The City has negotiated a license agreement with Focus Media Group, Inc., to provide advertising bus benches along the City's right-of-way.  Garden Grove Municipal Code section 11.36.140 provides that before the issuance of any permit for the installation of any bus shelter, the licensee shall make a cash deposit, or provide a performance bond in a form acceptable to the City Attorney, in the amount approved by the City Council by resolution.  Garden Grove Municipal Code section 11.36.020 provides that the deposit required by Section 11.36.140 applies to both, bus benches and bus shelters.

Currently, the City's Master Fee Resolution only contains a $500 fee per bus shelter, which also applies to bus benches.  Because the cost to install, maintain, and replace/remove bus benches is substantially less than the cost associated with bus shelters, the City has negotiated with Focus Media Group, Inc., to reduce in half the deposit required for bus benches.  In order to implement the agreement, a resolution adopting a separate bus bench security deposit fee is required.

Although the bus bench fee is one-half of the deposit required for bus shelters, it will enable the City to implement a new agreement with Focus Media Group, Inc., which will have positive financial impacts to the City.

It is recommended that the City Council:

• Adopt the attached Resolution adopting a separate bus bench security deposit fee.