POLICY REPORT

LICENSING

Date: June 26, 1998

Author/Local: B. DesLauriers 7741

CC File No. 2630

TO:	Standing Committee on City Services and Budgets
FROM:	General Manager of Engineering Services
SUBJECT:	Newsboxes on City Street Allowance

RECOMMENDATIONS

A.That previous policies for allowing newsboxes on streets (which permitted only locally produced newspapers with daily circulation over 1.5% of the population) be rescinded.

B.That the placement of newsboxes on city street allowance be prohibited except with permit issued by the General Manager of Engineering Services.

C.That the placement of newsboxes on City streets be subject to the guidelines outlined in Appendix I.

D.That permits be issued by Engineering Services subject to the guidelines and conditions shown in Appendix I at an annual cost of $20.00 per newsbox (plus GST) in addition to the existing $21.00 Vending Machine License fee for coin-operated boxes.

E.That all Publishers having newsboxes on City Street allowance be required to enter into a license agreement with the City and accept liability for their newsboxes to the satisfaction of the Director of Risk Management.

F.That a one time temporary three month position, an annual three month position (6 months in the first year and 3 months each following year) and the purchase of necessary supplies and equipment be approved to set up, administer and enforce the newsbox program. Funding to come from program revenues (details shown in Appendix III).

G.That the General Manager of Engineering Services be authorized to approve pilot projects for the installation of newsbox enclosures, multiple publication vending structures and/or manned newsstands if appropriate proposals are submitted by BIA and media representatives. Costs would be shared between interested parties with the City contributing a maximum of $10,000 for newsbox enclosures only.

H.That the General Manager of Engineering Services be authorized to approve individual colour schemes and designs for news vending boxes.

I.That the Director of Legal Services prepare appropriate License agreements to reflect the above, and the City Engineer be authorized to sign such agreements on behalf of the City.

COUNCIL POLICY

Council's policy on newsboxes, which has been in effect for many years, limits permission to place boxes on street allowance to those publications which:

1.are Vancouver produced (papers such as The Sun and Province which are produced in Surrey are considered to be in keeping with the intent of this policy)

2. are produced daily

3. are a paid publication (coin operated boxes)

4. have a circulation greater than 1.5% of the population.

PURPOSE

This report reviews the existing policy on placement of newsboxes on city street allowance, notes the experience of some other cities and recommends changes.

SUMMARY

This report recommends the establishment of a permit system for the placement of newsboxes on city street allowance. The intent of the system is to provide more control over standards of maintenance and appearance and to minimize obstructions of pedestrian corridors and sightlines, while ensuring fair and equal opportunity for all publications to secure space on city street allowance.

BACKGROUND

In 1956, Council approved a policy on the placement of newsboxes on City street allowance.

No fee was paid to the City for these boxes which were originally regulated through legal agreements. These agreements were never updated and will be superseded by the agreements discussed in this report. In 1982, the policy was revised to it’s existing form. The intent of this policy was to make "news" available to the public in a quick and convenient fashion.

Over the years, the role of the daily newspaper has changed from immediate distribution of late-breaking news to less timely but more in-depth reporting of current events. With advances in technology, the public now rely on other sources (TV, radio, Internet, etc.) for spontaneous news reports. In recent years, special or "extra" editions are seldom, if ever, produced.

Furthermore, many of the publications available in the "newsboxes" are not news at all - they contain information on employment, computers, religion, etc.

In 1997, enforcement of unauthorized newsboxes was increased as a result of complaints regarding the poor condition and excessive numbers of boxes. This increased enforcement led to requests from a number of publications, which were previously not authorized on-street, to be given approval for street placement. On October 28,1997, Council directed staff to meet with interested Business Improvement Associations (BIAs) and media representatives, review the existing policy and report back with recommended changes.

DISCUSSION

For the purpose of this report a newsbox is defined as follows:

"A free standing structure for the purpose of distributing a publication,"

Current Situation

Under existing policies, only major daily publications with coin operated boxes qualify for street placement. The only form of licensing required for newsboxes is a "vending machine license" (issued by Permits and Licenses under the License By-law) which applies only to coin operated boxes. This fee is currently $21.00 per machine and applies equally to newsboxes, pop dispensers, coin operated laundry machines, etc. The fee applies regardless of whether the machine is on private or city property.

Over the years, an increasing number of free, weekly (or less frequent) publications on subjects such as: computers, employment, gardening, real estate, religion, etc. have chosen to use newsboxes to distribute their papers. Although these boxes are only sanctioned on private property, many have appeared on city streets. These publications serve a more limited demand in the community and often have only a few boxes in specific areas.

There are approximately 1550 licensed and approved newsboxes placed on city streets. In addition, it is estimated that another 600 to 700 unapproved boxes are located around the city, for a total of more than 2,000 boxes. (This number is expected to drop to approximately 1600 if permit fees are applied.) Many of these operators have requested approval to keep their boxes on street but cannot be approved under the existing policy. As all publications serve the public and can be considered to be valuable methods of information transfer, staff believe there is a need to create a more level playing field.

Due to concerns expressed by the business community, staff also believe there is a need to better manage the use of street space in terms of: the number of boxes at each location, standards of maintenance, graffiti control, etc.

Review Process

In reviewing the existing program and exploring possibilities for change, staff met with representatives of the "news" publications and Business Improvement Associations. A task force was formed consisting of representatives of the publishers, (Pacific Press, Globe and Mail, Wall St. Journal, Financial Post, Georgia Straight, Employment Paper, The Voice and the Computer Paper) the BIAs ( Downtown Vancouver, Robson Street and Gastown) and City staff. The Task Force developed objectives which are outlined in Appendix II.

Some information was also received from the cities of Toronto and San Francisco regarding their approval and administrative processes, as well as design examples for newsbox enclosures and attended newsstands.

The City of Toronto permits the placement of newsboxes on street under a number of conditions including:

Payment of a permit fee in the amount of $25.00 ($50.00 in the downtown).

Entering an agreement with the city respecting placement, maintenance, removal, liability, the recycled fibre content of the publication, etc.

The City of San Francisco also permits newsboxes on street and has recently been looking at possible solutions to the problem of cluttered street furniture. They have an estimated 12,000 to 15,000 boxes at 1,000 or more locations around the City. Designs were submitted by four companies to erect and maintain multiple publication structures on City streets for a trial period. A public survey indicated a positive response to the structures and they arecurrently accepting proposals to install them at high demand locations around the city. The structures would be funded through the sale of advertising space, with no cost to the City or the publishers. There is currently no charge for the placement of newsboxes on the streets of San Francisco, however, they are proposing a fee per box or enclosure space, based on cost recovery, to begin in 1999.

PROPOSED NEWSBOX PROGRAM

Staff recommend that a permit program be established to control the placement of newsboxes on City street allowance while giving fair and equal access to street space regardless of the cost of the publication, circulation numbers or content. Permits would be available to all types of publications including but not limited to newspapers and special interest publications on such subjects as: computers, gardening, religion, employment, foreign language papers, advertising, etc.

Fees

There is some opposition from the publishing companies to the proposed permit fee of $20.00 per box per year, particularly from publishers who have a large number of boxes on street. Although it is understood that additional business costs are seldom welcome, the permit fee would: provide a fair and appropriate return for the rental of street space, recover administration and enforcement costs associated with the program and encourage box owners to find off-street locations for their boxes whenever possible.

The proposed fee is consistent with the fees paid by other users of street allowance, such as sidewalk cafes, garbage containers, street vendors, buskers and produce and flower displays. The approximate annual rates for these programs, on a per square foot basis, are as follows:

PROGRAM	ANNUAL FEE	APPROX FEE PER SQ. FT.
*Sidewalk Cafes		$4.50 to $7.50
*Street Vending Merchandise Food	$ 450.00 600.00	$19.00 to $25.00
*Produce & Flower Display	$200.00	$2.50 to $12.50
Buskers	$ 75.00	$7.00
Newsboxes	$ 20.00 (proposed)	$8.00

*Rates are under review and proposed changes will be included in a report to Council later this year.

The companies who operate coin boxes object to the fact that the existing "Vending Machine License" fee applies only to coin operated boxes and not the free publications. Since the Vending Machine License is, in fact, a Business License for an automated commercial enterprise and applies equally to all types of coin operated vending machines (including candy and pop dispensers and laundry machines) it is not possible to require free boxes to pay the vending machine license fee. However, staff will arrange for both fees to be accepted at one location in keeping with the concept of one-stop-shopping.

Box Design

The existing guidelines require approximate box dimensions of 24" wide, 15" deep and 42.5" high. When several boxes of different sizes are placed at one location the lack of uniformity creates an appearance of clutter. This issue is an important one to the BIAs, who feel strongly that box sizes should be somewhat uniform (particularly in height). The existing standards seem reasonable and the approved boxes already conform to these dimensions.

The publishers have a large investment in the existing boxes and are understandably unwilling to purchase all new boxes. It is suggested that Companies who currently have smaller boxes raise them to meet the 42.5 inch height standard and any new boxes be constructed to the standard size. There has been some discussion regarding how to achieve standard box heights and staff will work with the publishers to identify suitable methods when required. Adjustments may only be necessary in more congested areas. There are very few boxes which are larger than standard and these will not be approved on street but may still be used on private property.

Box Colours

Currently, approved boxes must be painted light grey and may carry a narrow coloured band bearing the publication’s name. Although this design has been uniform and generally tidy, it adds little interest to the streetscape, is not easily identified from a distance and presents an inviting canvass for graffiti artists. A number of companies would prefer to use more interesting colour schemes and this proposal was unanimously supported by the Task Force, provided no third party advertising is included. It is therefore recommended that the General Manager of Engineering Services be authorized to approve individual colour designs which would enliven the streetscape and discourage graffiti.

Graffiti Removal and Maintenance

It is recommended that maintenance and graffiti removal be the responsibility of the box owner. This is the arrangement preferred by the publishers. After considerable discussion, it was agreed that a reasonable response time for maintenance and graffiti problems would be 72 hours or 3 business days (whichever comes first). This is reflected in Guideline #7 inAppendix I. The condition of the boxes will be monitored and if this arrangement proves unsatisfactory in the future, the new Graffiti Removal program could expand to include newsboxes. The purchase of a digital camera to monitor and record graffiti and maintenance incidents is recommended. This camera would be shared with the Graffiti Vehicle and other street activity programs. The cost of approximately $700 would be funded from program revenues.

Allocation of Space

In order to minimize clutter and sidewalk obstructions, it is recommended that, as a general guideline, no more than three newsboxes be placed at any one location, with a maximum of six boxes per block face. Some adjustments may be made at specific locations based on: sidewalk width, pedestrian volumes, presence of other street furniture, length of the block, etc. at the discretion of the General Manager of Engineering Services. Space will be allocated on a first come first served basis except where the demand exceeds the available space.

It will be necessary to relocate some boxes from the locations where more than three boxes are currently placed. It was agreed that the publishers would negotiate amongst themselves for the space at these high demand locations but if agreement cannot be reached, staff will facilitate a lottery, giving preference to those who do not already have a box at the same intersection.

There was some disagreement regarding the method of allocating space at high demand locations. Pacific Press felt strongly that preference should be given to paid publications and the Georgia Straight (and other free papers) were equally adamant that all publications be treated equally. After considerable discussion staff recommend that no preference be given based on circulation, cost or content.

Compliance

A decal or permit system to identify boxes and tie them to locations was considered but not adopted. The difficulties in tracking decals on relocated boxes and replacing those destroyed or removed through refurbishing makes a decal system impractical. After some discussion, it was decided that the numbers and locations of newsboxes on street could be controlled through inventories submitted by the Publishers and monitored by staff.

A Company, whose inventory showed less than the actual number of boxes on street, could be charged double the permit fee for each additional box. Because there is some fluctuation in the number of boxes on the street due to maintenance and relocation, an error rate of approximately 5% could be tolerated before penalties are applied.

Section 71(1) of the Street and Traffic By-law states that no one may place or maintain any object or structure on City street allowance without first obtaining permission, in writing, from the City Engineer. Staff recommend that permission be given in the form of a legal agreement between the City and any Company wishing to place boxes on the street, subject to the conditions outlined in this report.

Enforcement staff would monitor the placement and condition of newsboxes on street, ensure regular service and verify inventories submitted by the Publishers. Publishers would be notified of placement or maintenance issues and if not corrected the box would be removed (under Section 71(3) of the Street and Traffic By-law #2849), held in secure storage and returned upon payment of a $50.00 impound fee and correction of the problem.

Enclosures/Structures/Newsstands

The Committee discussed a number of options for reducing clutter, improving appearance and increasing the number of publications which could be distributed at high demand locations. These options included:

enclosures - surrounds to enclose up to three standard newsboxes

multiple publication structures - fixed units with numerous vending slots to accommodate multiple publications at high demand locations

newsstands - attended structures for the sale of publications.

It was agreed that these concepts held some merit, such as using designs which would be in keeping with the character of certain areas, reducing graffiti and clutter, and beautifying the area, etc. Funding for these structures could come from a number of sources such as: permit revenues, cost sharing by business through the BIAs, local improvement beautifications, rental of distribution space by publishers, etc.

Although this report deals specifically with the management of newsboxes on street, the publishers and BIAs have expressed an interest in continuing to investigate other options for news vending structures and even attended newsstands. It is recommended that the General Manager of Engineering Services be authorized to consider and approve proposals for pilot projects involving enclosures, multiple publication structures or newsstands that are received from these groups. Regulation of these structures would be through legal agreement.

Since enclosures will help to beautify the streetscape and fit into a common theme for the local neighbourhood, it is recommended that the City share in the cost of the newsbox enclosure projects only through the Streets Beautification program to a maximum expenditure of $10,000. The costs for multiple publication structures or newsstands, however, would be shared by the interested parties.

Staff would report back to Council before entering any long term arrangement.

Guidelines

The recommended guidelines shown in Appendix I cover a number of issues including: fees, liability, permits, number of boxes per location, box specifications, maintenance etc. and were developed and agreed to by consensus by Industry, Business Groups and Staff representatives. The program will be monitored for one year and staff will report back if changes are necessary.

Staffing

It is estimated that the initial set up of the proposed program would require one staff position for 3 months. Duties would include: inventory of all on-street boxes, design of a computer database program, design and production of forms, permits, etc., establishing a process to maintain an inventory, issue permits, track costs and revenues and facilitate enclosure pilot projects.

Once the program is operating, approximately three months per year of additional staff time would be required to maintain the inventory, deal with problem situations and renew permits. This position could be merged with the existing permanent and annual half-time street activities enforcement positions to provide year round coverage for all programs.

The funding for these positions would come from program revenues.

FINANCIAL IMPLICATIONS

The proposed fee of $20.00 plus GST per year per box is expected to generate approximately $32,000 per year in revenue (estimated 1600 boxes x $20.00). Total program costs are estimated at $34,700 in the first year and $13,000 in subsequent years. (Details are provided in Appendix III.)

It is recommended that $10,000 from the Streets Capital Budget (Beautification) be made available to help fund newsbox enclosure projects in interested Business Improvement areas.

*****

APPENDIX I

GUIDELINES FOR THE PLACEMENT OF NEWSBOXES

ON CITY STREET ALLOWANCE.

Permission to place newsboxes on City street allowance may be granted under the following conditions:

1.Publishers must agree to indemnify the City against any liability arising out of the existence of the newsboxes on City property, and they must carry insurance acceptable to the Director of Risk and Emergency Management.

2. Payment of a permit fee for each newsbox placed on City property in the amount of $20.00 plus GST per year. (Coin operated boxes must also purchase a Vending Machine License in keeping with the License By-Law.)

3. Publishers must provide an inventory of newsbox locations twice a year (inventory is subject to City approval). The inventory will be checked, and an additional fee of $40.00 may be charged for each unreported newsbox.

4.A maximum of three newsboxes per location may be approved, with no more than two locations per block face. (These numbers may be adjusted at the discretion of the General Manager of Engineering Services at some locations, based on the physical constraints of the streetscape or the block length.)

5.Each publication is limited to one newsbox per location. Allocation will initially be on a first-come first-serve basis. Space at high demand locations will be negotiated between the interested parties. If agreement cannot be reached, successful applicants will be chosen through a lottery with preference given to those who do not already have a newsbox at the same intersection.

6. Newsboxes must be used for the distribution of a publication, and filled and serviced upon the release of each new edition. Unserviced newsboxes will be removed by City staff at the owners’ expense, and the permit cancelled.

7.Newsboxes must be well maintained and kept clean and free of graffiti. Graffiti removal and maintenance must be noted during the first service call and corrected within 72 hours or 3 business days of notification (which ever comes first). Failure to do so will result in removal of the newsbox at the owners’ expense, and/or cancellation of the permit.

8.The City has the right to remove or relocate newsboxes in the event of operational problems (such as: box contents becoming litter or a box collecting litter) or if the space is required for any other purpose. (Examples include but are not limited to: special events, street or utility construction or maintenance, bus shelter installations etc.)

-2-

9.Newsboxes must conform to the following specifications:

Size: 610mm (24 inches) wide

380mm (15 inches) deep

1080mm (42.5 inches) high

Colours:Newsbox colours must be approved by the General Manger of Engineering Services. No third party advertising is permitted.

APPENDIX II

TASK FORCE OBJECTIVES

The various stakeholders expressed their objectives for the review process as follows:

City Objectives

1 Public safety - locate to minimize risk of injury;

ensure unobstructed sight lines.

2. Accessibility- minimize obstructions to pedestrian traffic flows;

ensure unobstructed access to loading zones and bus zones;

minimize obstructions to vehicle parking.

3. Aesthetics - attractive design;

design to reduce graffiti and litter;

minimize space requirement to reduce clutter;

provide interest and improve street space.

4. Costs - recover administration costs;

recover market value for street space used.

Business Associations' Objectives

1. Appearance - maintenance standards (Graffiti, stickers, general repair etc.).

2. Reduce clutter (limit numbers of boxes).

3. Enclosures (start with a pilot area).

4.Improve delivery process for loose papers - (not dropped on the sidewalk prior to store opening). This issue is not related to the news vending boxes and is not addressed in this report.

Industry Objectives

1. Protect existing box numbers and locations.

2. Retain flexibility in terms of relocations and additions.

3. Provide opportunities for new publications in future.

4. Develop design and maintenance standards that reflect well on the industry.

5. Provide more flexibility in colour and decoration.

APPENDIX III

ESTIMATED PROGRAM COSTS

Estimated annual program revenue is:

($20.00 x 1600+/- boxes)= $32,000

Estimated program costs are as follows:

ITEM	DESCRIPTION	FIRST YEAR COST	ANNUAL COST
Staff	3 months	$11,000	$0
Staff	3 months annual	$11,000	$11,000
Administration	Supplies, printing, etc.	$ 1,000	$ 1,000
Vehicle	20% share of existing vehicle	$ 1,000	$ 1,000
Equipment	Digital camera (shared with other Street Activity Programs)	$ 700	$0
Enclosures	Pilot Project	$10,000	*
Total		$34,700	$13,000

*Staff will report back prior to further expenditures. *****

(c) 1998 City of Vancouver