CITY OFVENTURA f\dministrative REPORT
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1 CITY OFVENTURA f\dministrative REPORT Date: Agenda Item No.: Council Action October 28, November21,2011 To: From: Subject: RICK COLE, CITY MANAGER JEFFREY LAMBERT, COMMUNITY DEVELOPMENT DIRECTOR ABANDONED SHOPPING CART ORDINANCE RECOMMENDATIONS a. Continue to contract with the California Shopping Cart Retrieval Company (CSCRC) to retrieve carts in the community. b. Direct staff to return to Council on January 23, 2012, with the introduction and first reading of an ordinance of the City Council of the City of San 8uenaventura amending Division 8 (Public Health and Safety Regulations) of the municipal code by adding a new chapter pertaining to abandoned shopping carts (Attachment A). PREVIOUS COUNCIL ACTION None. SUMMARY The objective of the proposed Abandoned Shopping Cart Prevention and Retrieval Program is to mitigate and ultimately severely reduce the blight and public safety hazards associated with abandoned shopping carts in the City of Ventura. A primary program component would require that all businesses that use shopping carts be held accountable for preventing shopping carts from being removed from their properties. In addition, shopping cart utilizing businesses would be accountable to revised procedures associated with shopping cart retention. The proposed ordinance is consistent with the City of Ventura General Plan policies 3A: Sustain and complement cherished community characteristics; 4A: Ensure that the transportation system is safe and easily accessible to all travelers; and 58: Improve services in ways that respect and even benefit the environment. 1
2 a interfere pedestrian and vehicular vagrant populations, and generally to a sense urban Shopping Cart Prevention and Retrieval Program is intended to create a efficient, and cost effective solution to this community problem by implementing measures: cart prevention and cart retrieval. PREVENTION With very few exceptions businesses within Ventura's city limits have not taken proactive steps regarding shopping cart theft, such as installing wheel-locking devices or assigning prevention duties to their business employees. RETRIEVAL Staff has estimated that there are currently 31 businesses in Ventura that utilize shopping carts. Staff also estimates that 16 of the 31 stores have an active contract with the California Shopping Cart Retrieval Company (CSCRC). The City of Ventura also has a contract with the CSCRC - intended to remove carts from public areas for stores that do not have CSCRC contracted services. The CSCRC (owned the California Grocer's Association) charges $3 per cart retrieved from public areas and returned to the store that owns the cart. The City Ventura currently has a "not exceed" $350 monthly contract ($4,200 annually) CSCRC. At $3 per cart each month the city pays for 116 carts be retrieved and returned. The CSCRC has exceeded the 116 amount each of the last 6 months, and staff is working to increase the "not to exceed" amount to $600 per month. The CSCRC declined, citing as proprietary information, the City's request for data associated with how many carts they retrieve and return for the 16 stores that are not covered by the contract. drawback of investing in retrieval as opposed to prevention is that it does not solve the the carts leaving'a parking lot in the first place. Furthermore, our current program does hold the responsible parties (businesses that use shopping carts) accountable for cart retention or for the cost of retrieval. Instead, the cost is passed down to taxpayers, which is difficult to justify to Ventura residents. Doing nothing, however, is not an alternative, as it would result thousands of carts scattered throughout the city. 2
3 In the spring of 2011, Community Development staff attempted to reach and meet stores to develop a voluntary theft prevention program. Staff hosted meetings to help develop programs for each business. With no incentives to participate and no penalties for cart mismanagement, there was virtually zero participation on behalf of the business owners. What staff offered the businesses as a voluntary compliance program over the summer and fall was unsuccessful. Therefore, staff suggests the only alternative is that adopts an ordinance requiring all non-compliant businesses to develop and implement a program preventing shopping cart theft and holds businesses financially accountable for stolen carts. Proposed Solution The proposed ordinance contains two components: 1) a required Abandoned Cart Prevention Plan for all businesses, and 2) continuing to retain the services of the California Shopping Cart Retrieval Company to collect and return carts. Abandoned Cart Prevention Plan Staff is recommending a program that requires that every business that uses ten (10) or more shopping carts develop an Abandoned Cart Prevention Plan as described in the attached draft Ordinance. Key components include: 1. On-site cart retention system - such as mechanical disabling devices, security guards, or other physical barriers; Shopping cart security after business business hours; carts are to be secured after 3. Written permission for cart removal- carts may removed without written permission from the cart owner; Mandatory cart abandoned carts. cart owners shall III"'lr"U"10 t'y\ 0 l"ll'l' a program 5. Cart identification signs - Each cart shall be labeled with owner contact information. 6. Cart Removal Warning Signs - Businesses shall display prominent and signs noticing the public that removal of shopping carts is prohibited; and 3
4 These preventative measures would be required no new stores. 1,2013 Retrieval Plan During the time non-compliant stores implement the plan outlined above, recommends continuing to utilize the CSCRC to retrieve and return carts stores, as opposed to allocating city staff time to retrieve and impound carts. Based on review of California State law and other cities' retrieval programs, a city staff retrieval effort would be costly and resource intensive. State law requires that all local agencies involved in shopping cart retrieval must follow procedures for notifying the owners of the carts prior to impoundment. While the law does allow agencies charge fees recover cost of retrieval and impoundment staff research indicates that the city VV... 8unA spend significantly more than the cost of the CSCRC services to maintain compliance with the State laws associated with impoundment. CITIZEN ADVISORY GROUP REVIEW None. PUBLIC DECISION MAKING/COMMUNICATION Staff hosted two merchant meetings in the spring of The purpose of the first meeting was to discuss the components of a voluntary Abandoned Cart Prevention Plan (ACPP) that eliminate the visual community blight that results when shopping carts leave store properties. The second meeting was intended to help businesses prepare there was little interest. On Monday, November 14, 2011 staff hosted a merchant meeting to notify business owners of the proposed mandatory program and to solicit input. Five businesses were represented at the meeting, in addition to the California Shopping Cart Retrieval Company, the Downtown Ventura Organization, and Project Understanding. Generally, the business community expressed opposition to regulations requiring on-site cart retention as it is costly, possibly ineffective, and inconvenient for customers. The CSCRC representative stated that the proposed regulations would be fair and effective. The Downtown Ventura 4
5 Administrative Page 5 October 28, 1 measures carts costs shopping cart retention systems, warning signs, shopping cart retrieval, and employee training. No costs would be by the City of Ventura. Staff expects that as a result implementation of the Abandoned Cart Prevention Plan on behalf of businesses, the City's CSCRC payments will be reduced. RETRIEVAL Currently, the City of Ventura pays $350 per month (or $4,200 per year) to the CSCRC for cart retrieval, and as stated above, is currently being increased to $600 a year, or $7,209. (Funding source: General Fund, program ) If the City Council directs staff to implement a City-run retrieval program, the additional tasks would increase expenditures for staff resources by one additional 0.5 FTE, or $25,000. If this option is selected, staff recommends that this position be funded through program Preventative measures on behalf of the shopping cart owners may allow the City Ventura to eventually reduce or terminate its contract with the CSCRC because fewer carts would be removed from store properties, reducing the number of carts that would retrieved. This would result in cost savings of up to $7,200 annually to the General Fund. AL TERNATIVES 1. Continue the status quo, resulting no change in the abandoned shopping cart issue. This alternative would continue General Fund allocation and reliance on City contract with CSCRC cart retrieval. 2. Revise the requirements of the proposed Abandoned Shopping Cart Prevention and Program. 5
6 Administrative Report Page 6 October 28, 1 Prepared Lilly For Peter Brown, a, unity Services Manager,AICP ity Development Department Reviewed as to fiscal impacts a Ctiief Financial Officer ITY COUNCIL City Manager's Office Attachment A ABANDONED SHOPPING CART ORDINANCE 6
7 ORDINANCE NO ATTACHMENT A AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN BUENAVENTURA AMENDING DIVISION 8 [PUBLIC HEALTH AND SAFETY REGULATIONS] OF THE SAN BUENAVENTURA MUNICIPAL CODE BY ADDING A NEW CHAPTER PERTAINING TO ABANDONED SHOPPING CARTS The Council of the City of San Buenaventura does ordain as follows: Section 1. Division 8 of the San Buenaventura Municipal Code is amended by the addition of a new Chapter to read as follows: Chapter Abandoned Shopping Carts Findings. Definitions. On-Site Shopping Cart Retention System Required. Shopping Cart Security After Business Hours. rit errniss.ion Reguir, rt removal from s Prem s.,e~ievalp ra~rrequir. ~.twl1~rlgenti<~t~~11 Sign..equired. Cart Removal Warnings Required. Employee Training Required. City Retrieval of Carts. Impoundment, Retrieval, Payment of Costs. Immediate Retrieval of Identified Carts Findings. A. The City Council finds and determines that shopping carts are being removed from businesses and abandoned throughout the City on public and private property. B. Abandoned shopping carts present a threat to the public health and safety because they obstruct pedestrian and vehicular traffic in the City, increase the operating costs of businesses and cause the City to expend resources unnecessarily to retrieve and remove shopping carts from public and private property. C. Abandoned shopping carts are typically the result of theft and contribute to the perception of community blight and a reduction of property values in the neighborhoods where they tend to accumulate. D. In enacting this chapter, the City Council has been mindful of the A v3 1 7
8 preemptive effect of state law, in particular Business and Professions Sections 22435, et seq., and, in reliance upon Business and Professions Section , this chapter avoids any express conflict with state law. The City Council finds that the regulatory fee established by this chapter is not a tax as that term is defined in subdivision (e) of Section 1 of Article XIIiC of the California Constitution (Proposition 26) because it is a charge for a specific benefit conferred directly to cart owners which is not provided to those not charged and which does not exceed the reasonable costs of conferring the benefit. Moreover, the regulatory fee established is a charge imposed for the reasonable regulatory costs incurred by the city in the enforcement of this chapter Definitions. A. "Business Premises" means the interior of a cart owner's commercial establishment, adjacent walkways, any loading area, and the parking area (which shall include a parking lot or other adjacent property provided by a commercial establishment for customer parking, including the entire parking lot in a multiple-store sha. B. "Cart r engraved surface permanently affixe a of the cart owner or retailer, or both; the te ephone num er the ca owner or retailer, or both; a tollfree number for cart retrieval; the individual cart identification number; and a notice to the public that unauthorized removal of the cart from the business premises is a violation of state law and City ordinance. C. "Cart" or "Shopping Cart" means a basket that is mounted on wheels or a similar device generally used in a retail establishment by a customer for the purpose of transporting goods of any kind. Shopping Cart does not include a cart sold to a customer or owned by a customer for his or her own personal use. D. "Cart Owner" means the owner or operator of a commercial establishment that provides carts for use by its customers and which owns or controls 10 or more shopping carts on the business premises. E. "Cart Removal Warning" means a sign or text that is at least 18 inches in width and 24 inches in height using block lettering not less than onehalf inch in width and two (2) inches in height containing a statement in two or more languages to the effect that unauthorized removal of a shopping cart from the business premises, or unauthorized possession of a shopping cart in a location other than the business premises, is a violation of state law and City ordinance. A v3 2 8
9 "On-Site Cart Retention System" means one or more of following measures: 1. Mechanical disabling devices on all shopping carts, which prevent the cart from being removed from the business premises by locking the wheels automatically or otherwise preventing movement of the carts off of the business premises 2. An on-site security guard to prevent customers from removing carts from the business premises 3. Bollards and/or other barriers around the business premises to prevent cart removal, subject to approval of the City's Fire Marshal 4. Obtaining a security deposit from customers for the use of shopping carts on the business premises 5. Any other measure approved by the Director of Community Development as a means of preventing carts from being removed from the business pr tem Required. A., 2013 install, operate B. Every cart owner shall at all times contain all shopping carts on the business premises Shopping Cart Security After Business Hours. Every cart owner shall lock or otherwise secure all shopping carts during hours when the business premises are not open for business Written Permission Required for Cart removal from Business Premises. No person shall be authorized or deemed authorized to remove a shopping cart from the business premises unless her or she is in possession of written permission from the cart owner Cart Retrieval Program Required. Every cart owner shall have a cart retrieval program in place, which may include a contract with a cart retrieval service, that is sufficient to respond to complaints from the public or City regarding abandoned carts in a manner that A v3 3 9
10 results the retrieval of the carts within twenty-four hours of receiving complaint( s) Cart Owner Identification Signs Required. A. Each Cart owned or used within the City shall have a permanently affixed and clearly visible cart identification sign. Each cart owner shall continuously maintain or cause to be maintained the cart identification sign so that all of the required information is accurate and clearly legible Cart Removal Warnings Required. Every cart owner shall permanently and prominently post and maintain cart removal warnings on an interior wall of the business premises within two (2) feet of all customer entrances and exits. Cart removal warnings may also be posted on the exterior of the building. Each cart 0 ""dngoi employee training to educate new and e s.~/l.. r dures prevent cart removal from the business premises, inc u u' ~r hut not rlmlted to"t e operation of the onsite cart retention system City Retrieval of Carts. The City may retrieve an abandoned cart from public property (or private property with the consent of the property owner) in the following circumstances: A. Where the location of the shopping cart will impede emergency services. 8. When the abandoned cart does not identify the owner of the cart as required in Section C. When the city has contacted either the owner or the owner's agent and actually notified them of the abandoned cart and the cart has not been retrieved within seventy-two (72) hours. A v3 4 10
11 Impoundment, Retrieval, Payment of Costs. A. If the city retrieves a cart, the city shall hold the cart at a location that is reasonably convenient to the owner of the shopping cart and open for at least six (6) hours on business days. B. Where the city has not already provided notice to the owner that an abandoned cart needs to be retrieved, the city shall notify the owner that the city has impounded their cart and provide information as to the carts location, how the cart may be retrieved, that failure to retrieve the cart may result in the cart's sale or destruction, that the owner will be responsible for the city's costs, and that the city may fine owners after the city has picked up the owner's carts more than three times. In the case of a cart that does not provide adequate identification or markings to determine its owner the city shall only be required to notify the cart owner if the city obtains actual knowledge of the owner's identity. C. If a cart is not retrieved by its owner within thirty (30) days after the owner has received notice of the cart being impounded, or if the cart's owner cannot be determined, within thirty (30) days after the cart has been impounded, the cart may be sol tr by the 'ty or jt~..,ag,ftfl1s, C"or contractors.!~~ ~ {f '3 t :~{ D. The":"~ay ilsue an administrative citation of fifty dolla, u in Chaier 1.050, against any cart owner for any ay, a er e irst ree ays, during 'ai,y specified six-month period, in which the city picks up a cart under the circumstances found in Section E. No cart shall be released to its owner under the procedures in this section unless the owner pays a fee for the city's actual costs to retrieve and store the cart. The city's costs to retrieve and store may be provided in the Master Fee Schedule Immediate Retrieval of Identified Carts. Notwithstanding any other section of this chapter, the City may immediately retrieve a cart that does have the appropriate markings and identification under Section provided the city actually notifies the owner within twenty-four (24) hours that the city has impounded the cart and provides information to the owner where and how the cart may be retrieved. The city may not collect a fee or impose a fine, nor count a retrieval for purposes of a fine under Section D., if the cart retrieved by the City under this section, is collected by the owner within three (3) business days of the actual notice to the owner by the City. If the cart is not retrieved within three (3) business days by its owner, the City may collect its actual costs and impose a fine and dispose of the cart consistent with the provisions of Section A v3 5 11
12 Section 2. CEQA Findings. PASSED and ADOPTED this _ day of Bill Fulton, Mayor ATTEST: Elaine M. Preston I nterim City Clerk APPROVED AS Tf""t:~:e'ASAA 8y: Ariel Pierre Calonne City Attorney A v3 6 12
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