1.             bILLBOARD ADVERTISING PROGRAM

 

PROGRAMME DE PUBLICITÉ SUR PANNEAUX-RÉCLAMES

 

 

 

Committee Recommendations as amended

 

That Council:

 

1.   Direct the Deputy City Manager of City Operations to work with the Deputy City Manager of Infrastructure Services and Community Sustainability and staff from Building Code Services to identify additional City-owned properties suitable for signage opportunities;

 

a)   that any costs incurred to identify suitable locations will be offset by revenues generated from the Billboard Advertising Program;

 

2.   Direct the Deputy City Manager of City Operations to return to Council by the 2nd quarter of 2009 with a list of proposed sites for Council’s consideration;

 

a)   that once Council has approved the proposed site locations, that a Request for Proposal process be utilized in order to solicit bids from the outdoor sign industry;

 

3.   Direct staff to explore opportunities for corporate sponsorship within City of Ottawa buildings.

 

 

 

Recommandations modifiÉes du comité

 

Que le Conseil :

 

1.   Enjoigne le directeur municipal adjoint d’Opérations municipales de travailler avec la directrice municipale adjointe de Services d’infrastructure et  Viabilité des collectivités et le personnel des Services du Code du bâtiment afin de désigner d’autres propriétés de la Ville convenant à des possibilités de signalisation;

 

a)   Que tous les coûts encourus par la désignation d’emplacements convenables soient compensés par les recettes générées par le Programme d’affichage;

 

2.   Enjoigne le directeur municipal adjoint d’Opérations municipales de se présenter devant le Conseil d’ici le deuxième trimestre de 2009 avec une liste des emplacements proposés aux fins d’examen par le Conseil;

 

a)   Que, une fois que le Conseil aura approuvé les emplacements proposés, un processus de demande de propositions soit utilisé afin d’obtenir des offres de l’industrie de fabrication d’enseignes extérieures;

 

3.   Donne une directive au personnel d’explorer les possibilités de partenariats municipaux entre les bâtiments de la Ville d’Ottawa.

 

 

 

Documentation

 

1.      Executive Director, Business Transformation Services report dated 30 September 2008 (ACS2008-BTS-EXD-0011).

 

2.      Extract of Minutes 33 from the meeting of 21 October 2008.


Report to / Rapport au:

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

30 Septembre 2008 / le 30 septembre 2008

 

Submitted by / Soumis par : Stephen A. Finnamore/Executive Director

Business Transformation Services

 

Contact / Personne-ressource : Nadine Byrne / Business Transformation Services
(613) 580-2424 ext 22658, Nadine.Byrne@ottawa.ca

 

City-wide / À l’échelle de la ville

Ref N°: ACS2008--BTS-EXD-0011

 

 

SUBJECT:     Billboard advertising program

 

OBJET:          PROGRAMME DE PUBLICITÉ SUR PANNEAUX-RÉCLAMES

 

 

REPORT RECOMMENDATION

 

That the Corporate Services and Economic Development Committee and Council receive this report for information. 

 

 

RECOMMANDATION DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique et le Conseil  prennent connaissance du présent rapport.  

 

 

BACKGROUND

 

On 2 September 2008, the Corporate Services and Economic Development Committee considered a report on Billboard Advertising, as outlined in Appendix 1.  Following discussions on the report, Councillors approved the following referral motion (CSE 08-08) as put forward by Councillor El-Chantiry:


 

That this item be referred to staff for a report back on a policy with respect to :

 

a)   The possibility of allowing the Ward Councillor the ability, like with Planning issues, to veto a proposal; and

 

b)   The possibility of allowing the ability to direct the use of the funds generated from signs towards projects within the ward where those signs are located.

 

 

The purpose of this report is to provide information required to discuss the relevant issues related to the Billboard Advertising program, and to provide additional details as to the possibility of an individual Councillor being able to veto a proposal, as well as using funds from billboards to initiate projects within the ward where the signs are located.    

 

 

DISCUSSION

 

Item 1-Councillor Veto

 

Councillors requested clarification regarding their ability to “veto” a proposal, such as the installation of billboards within their ward.  The intent of this request is to ensure concurrence from the Councillor prior to the installation of any new billboards in their ward.  This request also allows Councillors the ability to reject billboards, if they believe there is a low level of tolerance among their constituents for new signage.  For the reasons set out below, there is sufficient legislative authority for Council to delegate such a veto to Ward Councillors with respect to billboards.

 

The amendments to the Municipal Act, 2001, which expanded the powers given to municipalities, included provisions related to delegation of authority.  Section 23.1 of the Act establishes a general legislative authority to delegate powers and duties to a person or body.  It provides for an ability to establish limits and conditions to a delegation and also provides that a delegation can be revoked at any time.  Furthermore, delegated authority must be exercised in accordance with any limits established to the authority and with any procedural requirements such as conditions, approvals and appeals.

 

In light of such a broad power, it would be possible for Council to delegate to individual Ward Councillors the authority to reject or "veto" a potential billboard location on City owned property within their respective wards during the consultation process that will precede the creation of the list of potential sites for review and approval by Council.  As indicated above, Council could establish limits to the delegation such as the veto may only be exercised in circumstances where the community has indicated that it is not in favour of a particular location in the ward, or there are aesthetic concerns regarding the location of a billboard on the site such as loss of a significant number of trees, and the Councillor reports to Committee and Council the exercise of the veto and the rationale for same.

 

As the enabling legislation outlines, delegated authority may be revoked at any time. As such, Council may wish to build in ability for the Committee to revoke the delegated authority and consider reinstating the location on the list of potential sites.  This situation could arise where the Committee is of the opinion that the general public interest of raising revenue to benefit the City at large should override the initial rejection of the site by the Councillor or concerns regarding the rejection of the site have subsequently been raised by community members.

 

By comparison, a form of revocation of authority is included in the procedures for the exercise of delegated authority for certain planning approvals.  The Delegation of Authority By-law requires that the concurrence of the Ward Councillor as a condition of the Director of Planning approving various development applications.  Therefore, if the application does not meet with the approval of the Ward Councillor, the Planning and Environment Committee must consider the application. The by-law also provides that Planning and Environment Committee may withdraw the Director’s delegated authority. While there is no final "veto" of a development application by a Ward Councillor, delegated authority is effectively removed from the Director or other named delegates.

 

Should City Council wish to establish delegated authority for individual Councillors to veto a proposed billboard location in their respective ward, staff would suggest the following process to reach a final conclusion on the potential sites for billboards:

 

This approval process will also include a resolution mechanism for proposed billboards located on City owned properties that cross-ward boundaries, and there is disagreement between the Councillors as to whether or not the site should receive further consideration.

 

The purpose of the Billboard Advertising project is to maximize revenues while safeguarding the City’s image, values and interests of the community.  If Councillors have the ability to veto billboards within their ward before discussion at Committee/Council, it would be difficult for staff to maximize revenues, as marketable locations with the ability to generate substantial revenues will not receive fair consideration. 


 

Item 2-Ward Specific Revenue allocation

 

CSEDC also requested staff to report back on the possibility of allowing Councillors the ability to direct funds generated from billboards toward projects within the ward where those signs are located.

 

Council has the authority to allocate billboard revenues to ward specific accounts.  If Council approves directing billboard revenues to specific ward accounts, staff will establish a process to enable this arrangement. 

 

The revenue from billboards cannot be considered permanent due to the fact the Signs By-law restricts the permit term to five-years (to enable reconsideration of the appropriateness of the sign location once every five years).  The Billboard Advertising program further restricts extensions to one optional five-year extension, subject to satisfactory performance, approved sign permit renewals, and financial terms deemed acceptable to the City.  Also at any point during the five-year term, the income from billboards could be discontinued due to a land sale, redevelopment, or the City terminating the contract due to what is deemed to be unsatisfactory performance by the vendor.  Consequently, billboard revenues should not be considered permanent revenue and they should not be used to fund permanent operating expenditures.  Instead these funds should be directed to a capital account to allow for incremental capital work in the ward.   

 

Notwithstanding, ward specific revenue allocation will create inequity among residents of different communities.  In direct terms, Councillors whose ward have billboards and therefore access to new revenue, will be in a position to initiate capital projects designed to enhance the quality of life for citizens in their ward.  Citizens residing in predominately residential wards, areas where billboards are not permitted or where the Councillor has rejected the installation of billboards will not have the opportunity or access to these capital enhancements.  The inherent inequity may cause concern by individual ward Councillors as well as the general public. 

 

As well, ward specific revenue allocation may result in Councillors approving or rejecting billboards based on anticipated revenues, rather than community based issues, such as saturation or an adverse reaction by constituents to the installation of new signs.

 

This type of revenue allocation is incongruent with the objective of the Billboard Advertising project, which is a strategic initiative designed to maximize new revenues in order to offset budget pressures and maintain current service levels benefiting all citizens.  Whereas ward specific revenue allocation will only benefit those citizens residing in geographic areas where billboards are located. 

 

Corporate Sponsorship and Advertising Policy

 

Billboard Advertising initiatives are covered under the Corporate Sponsorship and Advertising Policy that was approved by Council in July 2005, and outlined in Appendix B.  Although the policy does not make reference to a possible veto power or the ability to direct revenue to ward specific accounts, it does not need to be amended as the Delegation of Authority By-law states that billboard advertising initiatives require Council approval. 

 

Next Steps

 

The Billboard Advertising report presented to the Corporate Services and Economic Development Committee on September 2nd was referred back to staff for the reasons noted above.  In order to proceed with the expansion of the Billboard Advertising program, a motion will be required to consider the recommendations outlined in the report put forward by Councillor Desroches. 

 

The recommendations contained in the Billboard Advertising report #ACS2008-CMR-CSE-0040 are as follows:

 

1.   Direct the Executive Director of Business Transformation Services to work with the Planning, Transit and the Environment department to identify additional City-owned property suitable for signage opportunities;

2.   That, any costs incurred to identify suitable sites, be offset by revenues generated by the Billboard Advertising Program;

3.   Direct the Executive Director of Business Transformation Services to return to Council by the 1st quarter of 2009 with a list of proposed site locations for Council’s consideration; and

4.   That once Council has approved the proposed site locations, that a Request for Proposal process be utilized to solicit bids from the signage industry.

 

 

FINANCIAL IMPLICATIONS

 

If Council approves ward specific revenue allocation, net revenues will be distributed. 

 

 

CONSULTATION

 

Legal and Financial Services staff provided the content of this report. 

 

 

DISPOSITION

 

Staff will implement Council’s decision(s) / direction(s).

 


APPENDIX 1

 

Report to / Rapport au:

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

20 August 2008 / le 20 août 2008

 

Submitted by / Soumis par : Diane Blais, Committee Coordinator /

Coordonnateur de comité

 

Contact / Personne-ressource : Councillor / Conseiller S. Desroches
(613) 580-2751, Steve.Desroches@ottawa.ca

 

City-wide / À l’échelle de la ville

 

Ref N°:  ACS2008-CMR-CSE-0040

 

 

SUBJECT:     Billboard advertising program

 

OBJET:          PROGRAMME DE PUBLICITÉ SUR PANNEAUX-RÉCLAMES

 

 

REPORT RECOMMENDATIONS

 

That the Corporate Services and Economic Development Committee recommend Council approve the following:

 

1.         Direct the Executive Director of Business Transformation Services to work with the Planning, Transit and the Environment department to identify additional City-owned property suitable for signage opportunities;

 

2.         That any costs incurred to identify suitable sites be offset by revenues generated by the Billboard Advertising Program;

 

3.         Direct the Executive Director of Business Transformation Services to return to Council by the 1st quarter of 2009 with a list of proposed site locations for Council’s consideration; and

 

4.         That once Council has approved the proposed site locations, that a Request for Proposal process be utilized to solicit bids from the signage industry.

 

 


RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande au Conseil municipal d’approuver ce qui suit : 

 

1.         De donner instruction au directeur exécutif des Services de transformation des activités de collaborer avec le Service de l’urbanisme, du transport en commun et de l’environnement afin de répertorier d’autres propriétés de la Ville pouvant convenir à l’installation d’enseignes;

 

2.         Que les coûts de repérage des sites convenables soient compensés par les revenus engendrés par le programme de publicité sur panneaux-réclames;

 

3.         De donner instruction au directeur exécutif des Services de transformation des activités de soumettre la liste des emplacements projetés au Conseil d’ici au premier trimestre de 2009; et

 

4.         Que l’on ait recours à une demande propositions pour solliciter des offres d’entreprises de publicité une fois que le Conseil aura approuvé les emplacements projetés.

 

 

BACKGROUND

 

At the 19 August 2008 meeting of the Corporate Services and Economic Development Committee (CSEDC), Councillor Desroches submitted the following Notice of Motion, for consideration by the CSEDC at its meeting of 2 September 2008:
 

WHEREAS City Council approved, in July 2005, the Corporate Sponsorship and Advertising Policy and an 18-month workplan to pursue revenue opportunities;,

 

AND WHEREAS City Council approved a Billboard Advertising Program in July 2006 that included the installation of 20 new signs on City-owned properties, which are generating nearly $1.2 million over a period of 5 years,

 

AND WHEREAS the City owns other properties that can potentially be used to generate new billboard advertising revenues for the City;

 

THEREFORE BE IT RESOLVED that  Council direct the Executive Director of Business Transformation Services to work with the Planning, Transit and the Environment department to identify additional City-owned property suitable for signage opportunities;

 

AND BE IT FURTHER RESOLVED that any costs incurred to identify suitable sites be offset by revenues generated by the Billboard Advertising Program;

 

AND BE IT FURTHER RESOLVED that Council direct the Executive Director of Business Transformation Services to return to Council by the 1st quarter of 2009 with a list of proposed site locations for Council’s consideration;

 

AND BE IT FURTHER RESOLVED that once Council has approved the proposed site locations, that a Request for Proposal process be utilized to solicit bids from the signage industry.

 

 

CONSULTATION

 

This item will be advertised in the local dailies as part of the Public Meeting Advertisement on Friday preceding the Committee meeting.

 

Business Transformation Services

 

The Business Transformation Services department agrees with this motion directing staff to seek additional billboard advertising opportunities, as the City owns numerous properties that can be used to generate new revenues.  City staff acquired valuable knowledge and experience from the initial Billboard Advertising Project undertaken in 2005, and as a result are better positioned to maximize advertising revenue opportunities while at the same time safeguarding the corporate values, image, assets and community interests. 

 

Therefore if it is resolved that Council directs the Executive Director of Business Transformation Services to work with the Planning Transit and the Environment department to identify additional City properties suitable for signage opportunities, staff recommend the following approach:

 

·         The City will issue a Request for Proposal to retain the services of an external consultant familiar with the signs bylaws and permit application process to identify suitable sites, conduct investigations, and short-list sites for further consideration.  The selected consultant will have no vested interest or stake in future bids on signs and the cost incurred will be one-time only.

·         City staff will ensure the sites identified by the external consultant comply with the relevant signs and zoning bylaws, and consider urban design guidelines as outlined in the Official Plan.

·         City staff will consult extensively with key internal stakeholders (i.e. forestry services, facilities management, hydro) in order to ensure all issues are resolved prior to billboard installation.

·         City staff will also conduct appropriate consultation with elected officials and the general public as required and directed by elected officials.

·         A report and recommended list of proposed sites will be submitted for Council’s consideration by the first quarter of 2009.

·         City Council will provide final approval on the specific sites to be selected for placement of billboards, at which point an Request For Proposal with be issued seeking the highest bid/revenues for this method of advertising.

This approach will result in a better use of staff resources, preserve the integrity of the bidding process, limit up-front investigative costs and ensure the City receives all due revenues, rather than just a portion of the revenues if the process was managed by an outside agency.  

 

Planning, Transit and the Environment

 

The Planning Transit and Environment department concurs with this motion and will work collaboratively with the Business Transformation Services department to achieve the stated deliverables.

 

From an urban design perspective, the Department has three key areas of interest:  general locations in the city and sign design issues.  The Sign By-law addresses these concerns and all sites will be vetted by the Sign By-law.

 

Locational issues:  There are a number of locations in the city which would be unsuitable for billboard signs, such as, but not limited to, scenic entry routes, parkways and driveways, traditional main streets, heritage areas, certain town centres, etc.  While many of these may already be prohibited in the Sign By-law, locational issues beyond the Signs By-law will be considered when reviewing potential locations. 

 

Sign design:  While the Sign By-law would typically permit a certain size and height of a sign, there is little ability to influence the design of the sign itself.  However, as these signs would be on City-owned lands, it would be appropriate, within the restrictions provided by the Sign By-law, to use this initiative as an opportunity to set an example to the signs industry of well-designed billboard signage that is very respectful of its immediate context. 

 

 

FINANCIAL IMPLICATIONS

 

Any costs incurred during the implementation of the project will be offset by future revenues. 

 

 

DISPOSITION

 

Staff to implement Council’s decision(s) / direction(s).


Policy Statement

The City of Ottawa welcomes and encourages sponsorships and advertising undertaken to assist in the provision of City services and projects. All sponsorships and advertising shall be consistent with the City of Ottawa’s vision, mission and values and will not compromise or contradict any by-law or policy of the City, or reflect negatively on the City’s public image. All sponsorship and advertising agreements shall be established in a manner that ensures access and fairness, and results in the optimal balance of benefits to the City and the community. 

Purpose

The primary objective of the policy’s parameters and guidelines is to safeguard the City’s corporate values, image, assets, and interests while increasing the opportunities for revenue generation.

Scope

This policy applies to all relationships between the City of Ottawa and businesses, organizations and individuals that contribute either financially or in-kind to City programs, services or facilities in return for recognition, public acknowledgement or other promotional considerations. The policy applies to the following:

 

·        Program and special event sponsorship

·        Naming/renaming of City property, buildings, and structures

·        Pouring Rights

·        Paid advertising on City property, at City events, and in City publications

·        Preferred Supplier Status

Application

This policy applies to all City employees.  Exceptions to parts of this policy are extended to the Office of Protocol and the Public Health Branch. These are described in Appendices A and B. 

This policy does not apply to the City’s Elected Officials.


 

 

Principles and Conditions

 

General Requirements

 

All sponsorship and advertising agreements must comply with federal and provincial statutes, municipal by-laws, and the standards set out by the Canadian Advertising Standards Council.

 

The following conditions apply when establishing sponsorship and advertising relationships:

 

·        The City will maintain control over the planning and delivery of sponsorship activities.

·        Agreements shall not in any way invoke future consideration, influence, or be perceived to influence the day-to-day business of the City.

·        The relationship must not cause a City employee to receive any product, service or assets for personal gain or use.

·        Advertising devices must not impact the quality and integrity of the City’s properties, buildings, streetscape, and provide no added risks to safety.

·        The advertisement of a product or service does not act as the City’s endorsement of any one product or service over another. 

·        All political advertising will indicate that it is paid by a party or candidate, so as to avoid any impression that the City is supporting any particular party or candidate.

·        The sponsorship and advertising opportunity should be appropriate to the target audience

 

Restrictions for Sponsorship and Advertising

 

The City will not solicit or accept sponsorship or advertising from companies whose reputation could prove detrimental to the City’s public image and/or whose main business is derived from:

 

·        The sale of tobacco.

·        Pornography.

·        The support of, or involvement in the production, distribution, and sale of weapons and other life-threatening products.

 

The City will not allow advertising, either directly or through third party arrangements that:

 

·        Convey a negative religious message that might be deemed prejudicial to religious groups

·        Promote alcohol and other addictive substances, at venues geared primarily to children.

·        Present demeaning or derogatory portrayals of individuals or groups or contain anything which, in light of generally prevailing community standards is likely to cause deep or widespread offence.

 

The City may, at its discretion, bring any proposals to Council for their approval even if they do not meet the guidelines of this policy.  Council may also consider any proposal or direct staff to pursue any opportunities for sponsorship and advertising that do not strictly adhere to this policy.

 

Administrative Requirements and Authorities

 

Solicitation and Allocation of Sponsorship and Advertising Opportunities

 

Sponsorships activities should continue, as always, to be the result of direct solicitation by the City or elected officials to sponsors. 

 

As a general rule, the following sponsorship and advertising opportunities should be competed:

 

·        Opportunities that will offer a significant corporate profile.

·        Agreements of a lengthy duration (3 years and beyond).

·        Agreements that allow for exclusive benefits and recognition.

 

Non-competitive arrangements may be considered for the following opportunities when:

 

·        An unlimited number of sponsors are being sought.

·        It is a unique, innovative or experimental sponsorship opportunity.

·        Only one suitable sponsor can be identified.

·        The value of the sponsorship or advertising opportunity is less than $50,000.

·        The value of an In-kind media sponsorship is less than $100,000, or

·        The need is justified in a business case, approved by the relevant Deputy City Manager or the Chief Corporate Services Officer and, the Supply Management Division.

 

Unsolicited sponsorship and advertising proposals received by the City will be reviewed and evaluated by the relevant program director as per the provisions of the policy.

 

The City reserves the right to reject any unsolicited sponsorships that have been offered to the City and to refuse to enter into agreements for any sponsorships that originally may have been openly solicited by the City.

 

The selection of a preferred supplier will be consistent with the City’s procurement policy. There will be no requirement to obtain quotes or undertake a proposal and staff can initiate opportunities without the requirement to test the market further. 

 

All sponsorship and advertising agreements shall be evaluated on an annual basis to determine continued benefit. The term of all agreements shall not exceed three years unless authorized by the appropriate Deputy City Manager or the Chief Corporate Services Officer.

 

The City reserves the right to terminate an existing sponsorship or advertising agreement should conditions arise that make it no longer in the best interests of the City.

 

Delegation of Authority
 

City staff is authorized to enter into sponsorship and advertising agreements that do not exceed the following pre-authorized limits.  Agreements that exceed these pre-authorized limits will require City Council approval. 

 

Supervisors and Program Managers

Supervisors and Program Managers are responsible for approving all agreements for amounts up to $10,000 provided they satisfy all provisions of this policy.  

 

Managers

Managers are responsible for approving all agreements for amounts up to $50,000 provided they satisfy all provisions of this policy.  

 

Directors

Directors are responsible for approving all agreements for amounts up to $100,000 provided they satisfy all provisions of this policy.  

 

Deputy City Managers, and the Chief Corporate Services Officer

The Deputy City Managers, and the Chief Corporate Services Officer are responsible for approving all agreements for amounts over $100,000 within their respective Departments. The Deputy City Managers, and/or the Chief Corporate Services Officer will determine when it is appropriate to seek the authority of Council prior to a sponsorship being signed. 

 

City Council

City Council approval is required for any contract that does not satisfy the provisions of this policy and for opportunities involving the naming/renaming of City property, buildings and structures. 

Responsibilities

Departments are responsible for soliciting, negotiating and administering their own agreements.   Staff approving sponsorship and advertising proposals must ensure that all relevant by-laws and policies are adhered to, appropriate consultation and approval authorities are respected, and where applicable that insurance, indemnification, ethical scans, and permits have been obtained.  Departments are responsible for ensuring that third party advertising relationships abide by the restrictions noted in this policy.

 

Departments are responsible for maintaining a log of all sponsorship and advertising contributions and for issuing a written acknowledgement of the agreement to each sponsor or advertiser.  All sponsorship contributions in excess of $25,000 in total value shall be confirmed in a Memorandum of Understanding (MOU) or other legal agreement.

 

Contraventions

Failure to comply with this policy may result in disciplinary action.

Definitions

Sponsorship

A mutually agreed to arrangement between the City of Ottawa and an external company, organization, enterprise, association or individual evidenced in writing whereby the external party (sponsor) contributes money, goods or services to a City of Ottawa facility, program, project, or special event in return for recognition, acknowledgement, or other promotional considerations or benefits.  This does not include donations and gifts, or advice to the City where no business relationship or association is contemplated or is required and where no reciprocal consideration is being sought.

 

Forms of Sponsorship

·        Cash – A sponsorship received in the form of money.

·        In-kind – Goods or services of value to the City are received rather than cash.

 

Advertising

Advertising is the sale to an external company, organization, enterprise, association or individual of advertising space on City printed materials or property, at City events, or in conjunction with a City program.  Unlike sponsorship, advertising involves the simple purchase by an advertiser of advertising space sold at rates determined by the City.  The purchaser of this space is not entitled to any additional benefits other than those accruing from access to the space purchased.

 

Naming Rights

A naming right is a type of sponsorship in which an external company, organization, enterprise, association or individual purchases the exclusive right to name an asset or venue (e.g., a library building, sports facility or part of a facility - an ice pad within a multi-pad facility, etc.) for a fixed or indefinite period of time.  Usually naming rights are considered in a commercial context, which is that the naming right is sold or exchanged for significant cash and/ or other considerations under a long-term arrangement. This arrangement is usually documented in a written agreement signed by the interested parties and has a specified end date to the contractual obligations.

 

Pouring Rights

A pouring right is a type of sponsorship in which a corporation, an organization or an individual purchases the exclusive right to supply beverages at a City facility in exchange for significant cash and/ or other considerations over a long-term agreement.

 

Preferred Supplier Agreements

Preferred Supplier Agreements are multi-year contracts between the City and outside firms in which the firms agree to provide value-added support to the City in exchange for preferred status.  Value-added support is typically provided by discounted pricing as well as cash, and/or goods and services.  This process allows for a consistent approach to all current and potential supply line arrangements, which in the long run, will see the City lower its operating costs while at the same time generating additional revenue.

 

Ethical Scans

A search of a potential sponsor’s main company and subsidiaries, if any, that is performed to determine if the sponsor/advertiser meets the requirements defined by the Corporate Sponsorship and Advertising Policy or is otherwise affected by the “Restrictions on Sponsorships” section of the Policy.

References

Delegation of Authority By-law No. 2001-12, January 8, 2001

Code of Conduct, April 26, 2002

Purchasing By-Law No. 2001-72, April 11, 2001

Equity and Diversity Policy, July 19, 2004

Ontario Human Rights Code

Visual Identity Usage Policy, June 25, 2003

City of Ottawa Harmonized Signs By-law

Corporate Sponsorship and Advertising Procedures

Key Word Search

Sponsorship

Advertising

Gift-in-Kind

Naming Rights

Pouring Rights

Preferred Supplier Status

Contact

Business Transformation Services Department

City of Ottawa

Program Manager, Strategic Initiatives and Project Management

Telephone: 613-580-2424 ext. 22658

 


            Billboard advertising program

PROGRAMME DE PUBLICITÉ SUR PANNEAUX-RÉCLAMES

ACS2008-BTS-EXD-0011                                 city-wide / À l’Échelle de la ville                 

(Deferred from the meeting of 7 October 2008. / Reporté de la réunion du 7 octobre 2008)

 

Councillor Desroches referenced the previous agenda item and the fact that the City would face continuing pressures during difficult economic times.  He indicated staff continued to believe that there were more opportunities for billboard advertising throughout the City and he believed Council should look for other revenue opportunities.  For these reasons, he moved a motion directing that staff look, across the City, to see if there were any opportunities for new billboards.  He noted that his motion had been circulated to Committee members and that there would be opportunities, for both Councillors and the public, to comment on any new billboards.

 

Councillor Monette expressed support for Councillor Desroches’ motion and a desire to see it expanded to include a direction to staff to look at naming rights and corporate sponsorship for City-owned buildings and structures.  He believed a great amount of revenue could be generated from such a move and that the City should look at it.  He suggested that an inventory be prepared to see if any buildings or structures could be renamed. 

 

Councillor Deans wondered if the motion was put forward in the context of the staff report currently before Committee; whether it was anticipated that Councillors would have some measure of veto powers over the implementation of new billboard signs within their wards.  Councillor Desroches confirmed that he envisioned a situation where ward Councillors would have input into the billboard process.  However, he noted that his motion did not speak to how or where the revenue would be directed.  He believed the revenue should go into the City’s consolidated revenue because if it were to go to stay within the specific wards, it would be used for pet projects instead of the City as a whole.  In closing, he re-iterated that Councillors and the public would have input into any new billboards.

 

Councillor Deans felt the report provided very limited veto power to the ward Councillors because ultimately, Council as a whole would make the decision.  She indicated she would not support the motion because she felt the City already had enough billboards.

 

In closing, Councillor Desroches indicated he accepted Councillor Monette’s suggestion as a friendly amendment to his motion and therefore, he moved a revised motion.

 


Moved by Councillor S. Desroches

 

WHEREAS City Council approved, in July 2005, the Corporate Sponsorship and Advertising Policy and an 18-month work plan to pursue revenue opportunities;

 

AND WHEREAS City Council approved a Billboard Advertising Program in July 2006 that included the installation of 20 new signs on City-owned properties, which are generating nearly $1.2 million over a period of 5 years;

 

AND WHEREAS the City owns other properties that can be used to generate new billboard advertising revenues for the City;

 

THEREFORE BE IT RESOLVED that Council direct the Deputy City Manager of City Operations to work with the Deputy City Manager of Infrastructure Services and Community Sustainability and staff from Building Code Services to identify additional City-owned properties suitable for signage opportunities;

 

AND BE IT FURTHER RESOLVED that any costs incurred to identify suitable locations will be offset by revenues generated from the Billboard Advertising Program;

 

AND BE IT FURTHER RESOLVED that Council direct the Deputy City Manager of City Operations to return to Council by the 2nd quarter of 2009 with a list of proposed sites for Council’s consideration;

 

AND BE IT FURTHER RESOLVED that once council has approved the proposed site locations, that a Request for Proposal process be utilized in order to solicit bids from the outdoor sign industry;

 

AND BE IT FURTHER RESOLVED that staff explore opportunities for corporate sponsorship within City of Ottawa buildings.

 

CARRIED with Councillors Deans and Hume dissenting