HomeMy WebLinkAboutCSD-06-077 - Ottawa Street Message Centre Screen Replacements
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Community Services
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Community Services Committee
June 12, 2006
Keith Baulk, Director, Enterprise
Kim Kugler, Manager, Kitchener Memorial Auditorium Complex
Gary England - Project Manager, Energy Management
All
May 29,2006
CSD-06-077
OTTAWA STREET MESSAGE CENTRE SCREEN
REPLACEMENTS
RECOMMENDATION:
That the electronic message display screens on the Ottawa Street pilon sign be replaced
with new technology, and further;
That the screen replacements be funded over the next five years on a business case
basis through advertising revenues, energy savings and savings in bulb replacements.
BACKGROUND:
An outdoor double faced message centre was installed 10 years ago on the city owned parcel of
land on Ottawa Street by the expressway off ramp. The sign is used to advertise upcoming
event activity scheduled at the Aud and as a revenue source currently generating $13,000 in
revenue annually. The revenue has been used to offset the original capital cost. The original
capital costs for the message centre including the sign pilon, electrical upgrades and installation
was $185,000. To date there is a deficit balance in the capital account of $22,000.
The sign is aging and the technology is outdated. During the last two years significant dollars
have been invested maintaining the sign and additional dollars are required once again to make
the sign operational. Annually, the operating costs for the light bulbs are $4,000 and the utility
bill averages $6,000.
REPORT:
Currently the sign on Ottawa Street has one side of the message centre turned off and the other
side is running at approximately 80% of its capacity. As a result of winter damage the repair
and replacements of the bulbs will cost in excess of $6,000 and lost revenues for a sign running
at partial capacity is costing approximately $1,000 per month. Due to the significant investment
required to maintain the screens, staff undertook a review of the current operating costs of the
message board and a review of the new technologies now available in outdoor signs.
CSD-06-077
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Display technology has changed drastically over the past ten years. The LED or light emitting
diode technology has taken over the lighting aspect of outdoor digital signage. The fact that the
power consumption of an LED has reduced operating costs by as much as 85 - 90 per cent and
the 100,000 hours life expectancy of LED technology has substantially lower replacement costs.
With LED technology the annual maintenance costs will drop from $4,000.00 per year to
$1,000.00 per year and the energy costs of $6000 will decrease to $2,000 per year. Staff would
like to obtain quotes immediately so that the screens could be replaced and running for mid
August just prior to hockey season and event announcements.
FINANCIAL IMPLICATIONS:
Staff have worked with Facility Management staff in determining the amount of energy savings
to be realized.
Funding required for the two electronic screen replacements and installation is approximately
$75,000. Sources of funding will be $4,000 from Energy Management, $3,000 in capital cost
savings and $13,000 in advertising revenue. This totals $100,000 over 5 years.
A summary of the revenues and costs are as follows:
Revenues
1. Annual energy savings
2. Advertising revenues
3. Maintenance cost avoidance
Total/year
5 year total revenues
Costs
1. Capital costs of electronic boards
2. Current deficit
Total costs
$ 4,000
13,000
3000
$ 20,000
$100,000
$75,000
22 000
$97,000
CONCLUSION:
Replacing the Ottawa Street message centre screens will improve the aesthetics of the sign,
lower operating and energy costs and provide a valuable advertising medium for revenues.
These savings and advertising revenues will pay 100% of the cost of the sign over 5 years.
Keith Baulk, Director
Enterprise Division