Termination of Agreement on Logo (Flower) Beds Along Major Roadways (M. Phair)

Motion on the Floor:

At the City Council meeting on September 23, 1997 Councillor Phair [Councillor Langley] made the following motion:

“That the current agreement to provide logo (flower) beds along major roadways be terminated as provided for and in accordance with the conditions set out in the agreement and that this shall be done by December 31, 1997.

Recommendation:
  1. That Councillor Phair’s motion be defeated or withdrawn.
  2. That the pilot Logo Bed program continue in accordance with the Amendment as per Attachment 1.

Report Summary

This report provides:

  • evaluation of Logo Beds after second year of trial, including public acceptance and safety;
  • recommendation to continue the Logo Bed Agreement with Macdonald and Macdonald Outdoor Advertising Inc. (Logo Bed Agreement) with specified changes to meet upgraded safety and design guidelines including relocation of some beds;
  • information on the legal and financial implications involved in terminating the Logo Bed Agreement.

Previous Council/Committee Action

  • At the City Council meeting of September 23, 1997 the above motion was referred to the Administration “to report back on the implications, both legal and financial, involved in terminating this contract, to come back through the Community Services Committee at the same time as the evaluation report at the end of the second year trial.”

Report

A.Evaluation

1.Public Response

  • The results of a commissioned random telephone survey, September 22 - October 3, 1997, by Hargroup Management Consultants indicate that 84.2% of people who have seen the Logo Beds like them (71.9% of 800 people had seen the beds, up from 52.7% in 1996).
  • In 1997, the Action Centre logged a total of 362 calls on Logo Beds, of which 285 were opposed.
  • A total of 40 letters were referred to the Department in 1997. Of these letters 21 were opposed and 19 in favour of Logo Beds.

2.Safety Review

The Transportation and Streets Department commissioned a safety assessment of the existing Logo Bed locations, and the development of guidelines from a traffic safety perspective which could define the most appropriate locations for any future Logo Beds. The study focused on two aspects of safety:

  • ensuring that drivers are not distracted by the Logo Beds in areas where traffic flow and design complexity requires that motorists be most attentive to the roadway, and
  • ensuring that Logo Beds do not present an obstacle in the road right-of-way.

The safety assessment was undertaken by Tetra Systems Ltd.: a Transportation Engineering Professor from the University of Alberta, and a Professor of Psychology from the University of Calgary. Both of these professionals have been extensively involved with national committees reviewing the design of traffic control devices and signage.

The assessment of the existing Logo Beds concluded that the locations at the Whitemud Drive - Terwillegar Drive curve did not meet the guidelines being proposed. Their removal is recommended by the Transportation and Streets Department. Removal of the other two existing locations; Whitemud Drive at 159 Street and 149 Street is not recommended, although some minor modifications are proposed at the 149 Street location.

The guidelines developed for the assessment of future Logo Beds outline a number of broad principles to be applied, including:

  • a maximum of one Logo Bed at each location, with a minimum separation of approximately 300 metres between successive installations;
  • locations should take advantage of the natural sideslopes, as much as possible, and avoid the use of any structures adjacent to the road;
  • locations should not be in areas where it is anticipated that merging, diverging or significant lane changing activity is taking place; and
  • locations on sharp curves, or in other sections of limited geometry are inappropriate

Applying these guidelines to Whitemud Drive, between Anthony Henday Drive and 34 Street, and discounting locations that are unsuitable due to conflict with the River Valley or due to geotechnical issues, approximately 10 additional locations appeared to be suitable from a traffic safety perspective.

3.Improvements for 1998.

The following design changes will be implemented to improve the appearance of the Logo Beds:

  • increase flowers to minimum of 80%, as well as additional floral plantings in front of beds;
  • simplify design to improve glance recognition. Lettering to be limited to hard surface materials for legibility and ease of word recognition;
  • new beds to have minimal structural walls; and
  • eliminating from view all logos and wording during the off season, from November through April.

Changes to address safety concerns per Transportation and Streets Department recommendation are as follows:

  • beds on Whitemud Drive - Terwillegar Drive Curve to be relocated.
  • minor modifications to be implemented at 149 Street site.
  1. Value of Logo Beds

The program if continued as recommended for the next six years will provide $180,000 in revenue. These revenues will fund beautification partnership projects:

  • Partners in Parks projects that are subsequently maintained by residents or community groups;
  • Beautification Planter Project in partnership with Hole’s Greenhouses, offered to Business Revitalization Zones to encourage increased use of floral colour;
  • Communities in Bloom participation which resulted in Edmonton winning national award; and
  • Logo Bed plantings, in partnership with Macdonald and Macdonald Outdoor Advertising Inc. for permanent value beyond the life of the Agreement.
  1. Legal and Financial Implications involved with termination of Logo Bed Agreement
  • Pursuant to the Logo Bed Agreement, the City may terminate the agreement on thirty days written notice. In addition, prior to April 1 in each year, the City may remove all or any of the present sites from the Schedule of permitted sites.
  • Should the City terminate the Logo Bed Agreement as it relates to any or all of the sites, the City must compensate the Licensee for the capital costs of the logo bed improvements related to the particular site(s). These capital costs are to be amortized over the five year term, with the City paying an amount equal to the unamortized portion of the capital costs, to a maximum of $12,000 for each site.
  • If the City were to terminate the agreement as it relates to all of the sites, the City would be required to pay compensation to the Licensee for the capital costs of the logo bed improvements. The compensation payable would be approximately $55,000.
  • The Logo Bed Agreement provides that upon termination by the City, the City is not to be liable to the Licensee for any damage or loss as a result of termination. It is the opinion of Corporate Services Department, Law Branch (Don J. Manderscheid) that this provision of the Logo Bed Agreement enables the City to terminate the Agreement without liability, other than as stated above.
  • Should the City terminate the agreement, the City would incur a loss of approximately $30,000 in annual revenue. This loss would require either replacement with tax levy funding or abandonment of the beautification programs funded by these revenues.
  • In addition there would be an annual loss of revenue of $10,000 to the Muttart Conservatory because of the loss of bedding plant sales and a loss of funds that are presently provided to Community Services Department to plant and maintain the Logo Beds.

Justification of Recommendation

  1. The Administration recommends withdrawal or defeat as outlined in number 2 below.
  2. The recommendation to continue the pilot logo bed program is based on the results of the overall evaluation and the proposed changes:
    - high level of public acceptance
    - safety issues are addressed
    - design improvements and increased flowers
    - program revenues will continue to support beautification projects and partnerships

Background Information Attached

  1. Amendment to Terms and Conditions of Agreement with Macdonald and Macdonald Outdoor Advertising

Others Approving this Report

  • Rick Millican, Transportation and Streets Department
  • Ronald J. Liteplo, Corporate Services Department

(Page 1 of 4)

Attachment 1

Amendment to Terms and Conditions of Agreement with Macdonald and Macdonald Outdoor Advertising

  • That the Section of Whitemud Drive approved for Logo Beds be extended from the City Limits in the east to Anthony Henday Drive in the west and that the section of Whitemud Drive between the 122nd Street and 149th Street interchanges be removed from the approved area for the placement of Logo Beds and that subsequently, the Logo Beds at the Northbound curve at the Terwillegar Drive interchange be removed.
  • That at the discretion of the General Manager, Community Services, the Logo Bed Agreement be extended by three one year renewals.
  • That the City and Macdonald and Macdonald Outdoor Advertising enter into an amending Agreement in a form acceptable to Corporate Services Department (Law Branch) and in content acceptable to the General Manager, Community Services Department.

Attachment 1 - Page 1 of 1