ADMINISTRATION REPORT
July 10, 1995
TO: Vancouver City Council
FROM: General Manager of Engineering Services, in consultation
with General Manager of Corporate Services
Subject: Revenue Generation Pilot Program -
Street Name Signs
RECOMMENDATION
THAT Council approve the sale of street name signs to the general
public.
COUNCIL POLICY
There is no applicable policy regarding this subject.
PURPOSE
The purpose of this report is to obtain Council approval for an
entrepreneurial program to generate revenues from the sale of street
name signs.
BACKGROUND
Engineering Services is reviewing ways to generate revenues to help
cover costs associated with its programs. Results of a North America-
wide survey have confirmed that several municipalities are developing
"entrepreneurial" methods of generating revenues. Examples include the
sale of street name signs, salvage items such as fire hydrants and
parking meters, and consulting and maintenance services provided by City
personnel. The cities of San Diego and New York have established "City
Stores" to sell surplus items to the public, and these retail outlets
have proven to be very successful. Although the concept of a City Store
may have future potential, it is proposed to make street name signs
available for public purchase as a pilot program.
DISCUSSION
Street name signs would be produced from a choice of three materials,
depending on their intended uses. The proposed sale price for each type
is outlined in Table 1. Mounting brackets, if required, would be sold
for $12.00. All signs would be produced by Engineering Services'
Traffic Paint Shop. The Traffic Paint Shop produces street name signs
using a screen process, and screens exist for City street names that
should have some appeal to the public (e.g. Water St., Robson St.,
Woodstock St., Beach Ave., etc.)Table 1. Proposed Street Name Sign
Prices
MATERIAL SALE PRICE*
1 SIDED 2 SIDED
Sheet Metal $50.00 $90.00
Plastic (SINTRA) $20.00 $40.00
Decals $15.00 N/A
*Prices represent a mark-up of over 100% of the production cost.
Street name signs would be produced by staff during their regular work
shift. Since the volume of sales to the public is not expected to be
excessively high, no additional equipment or staffing costs are
proposed. Priority would still be given to jobs for existing programs,
with the additional signs made up during periods when excess capacity of
the shop's street name sign equipment is available.
2
A benefit could be a reduction in theft of existing street name signs,
which amounts to about 150 signs annually. It would also provide the
Paint Shop personnel with additional pride and incentive to do quality
work and provide a high level of customer service.
Proposed outlets for purchasing the street name signs include City
service desks such as the 7th Floor Parking Permits counter at City
Hall, and the West End Community Centre where the City operates an
auxiliary Parking Permit service counter. Although space at these
facilities is limited, a small number of sample street name signs may be
kept on hand for direct sale. Orders can also be taken at these
counters and signs can be picked up at the point of purchase when they
are ready. Production time for signs is approximately one to two weeks
(depending on the volume of jobs related to existing programs.) All
orders would require a deposit of 50% of the sale price.
In the future, street name signs may be sold through a City Store,
should such an outlet be developed. A brochure from the San Diego City
Store, describing the types of signs they make available to the public,
is included in Appendix 1.
FINANCIAL IMPLICATIONS
A sales forecast of 20 signs per month would generate approximately
$4,800 in annual profits. The initial costs in the development of this
program would include promotion and production of sample signs. Funding
in the amount of $1,000 will be needed as seed money to produce sample
signs and display materials. Since the signs will be sold at a 100%
mark-up, all start up costs are expected to be recovered within the
first year of operation. After these costs are repaid, profits will be
returned to help fund regular operations in the Sign Shop.
CONCLUSIONS
Revenue generating programs, such as the Street Name Sign Program, could
provide additional funding and help maintain a high level of service,
without impacting the operating budget. Staff will evaluate the
progress of this program as a pilot project, and report back after the
program has operated for a year.
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