The City’s Bus Shelter Ordinance (Title 11, Chapter 36 of the Municipal Code) was established in 1988 and governs the installation, maintenance, and other terms required for license agreements with bus shelter companies.  The City provides amenities and services in the public right-of-way and encourages innovative approaches to revitalize public spaces and promote economic vitality without compromising aesthetics, safety, or mobility. Part of this effort includes bus stop ridership amenities involving bus shelters, and bus benches, which help sustain and promote bus ridership throughout the county. Approximately 280 bus stops are located throughout the arterial streets within City limits.  Approximately 100 bus shelters are placed around the City and are part of a non-exclusive license agreement with Clear Channel Outdoor. Additionally, the City has installed over 70 city-owned bus benches. 

There are currently two main national advertising companies, Clear Channel Outdoor and OUTFRONT Media that no longer provide advertising bus benches and are more focused on advertising bus shelters. One local advertising company, Focus Media Group, provides bus bench advertisements to the cities of Fullerton, Westminster, Stanton and Seal Beach. Based on the foregoing and per Municipal Code Section 2.50.060(F), the Finance Director has determined that Focus Media Group is a sole source provider.

Focus Media Group provided a proposal for a 10-year license agreement for advertising-supported bus benches throughout the City. There would be no-cost to the City due to the revenue generated by advertisements and they will fully cover the installation, maintenance and operation of benches. A select number of existing benches will be removed and replaced with these new benches along with the addition of new benches at various locations that do not currently have bus benches. Compensation to the City would be 15% of the advertising revenue. It is estimated that the City will collect approximately $23,500 annually based on the installation of approximately 175 bus benches.  Another benefit of Focus Media Group is their ability to provide local businesses with cost effective advertising rates to support the “Buy in Garden Grove” Program. 

There is no impact to the General Fund. 

It is recommended that the City Council:

• Approve a ten year License Agreement with Focus Media Group, Inc., to provide and maintain new bus benches; and

• Authorize the City Manager to execute the agreement on behalf of the City.

By:  A.J. Holmon III

       Streets and Environmental Manager