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STAFF REPORT �j
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REQUEST: ORDINANCE NO. 11s� - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, CONCERNING
ABANDONED SHOPPING CARTS IN THE CITY OF PALM DESERT.
SUBMITTED BY: Gary Rosenblum, Risk Manager
DATE: June 25, 2009
CONTENTS: I. Ordinance No. iis�
II. California Codes Section 22435-22435.8
Recommendation:
Waive further reading and pass Ordinance No. i�s� to second reading.
Executive Summary:
In order to control and reduce the number of abandoned shopping carts in the City of Palm
Desert, and to permanently reduce the annual $14,000 cost of managing abandoned
shopping carts, City Staff recommends that the City Council approve the attached
ordinance. This is a perFormance based ordinance requiring the City's retailers who own
shopping carts to control cart loss and abandonment in the City. The ordinance allows
retailers up to six months to develop an "Effective Shopping Cart Nuisance Abatement
Program." Retailers who do not have an "effective program" will be required to reimburse
the City for the actual cost of collecting and returning the abandoned carts through a
"Nuisance Abatement Fee," which will be collected at the time of annual Business license
renewal. After six months, the ordinance is expected to greatly reduce the annual cost to
the City to perform the shopping cart retrieval services. The ordinance does not entirely
eliminate the need to maintain some kind of cart retrieval service. In order to avoid an
appropriation for continuing the City's current contractor service, Public Works will
implement the State-required processes for retailer notification and cart impound lot. In
addition to the cart collection and impound processes, the ordinance requires the City to
properly document and calculate the annual fees for the retailers with ineffective programs.
After three months Public Works will be able to determine the annual estimated cost for
implementing the ordinance and collecting and impounding carts. If the current contractor
is maintained, it is expected that the immediate appropriation would be $8,000 with cost
recovery resulting in a net ongoing cost to the City under $1,500 annually.
Staff Report
Shopping Cart Retrieval Ordinance iis�
J u ne 25, 2009
Page 2 of 3
Discussion:
In order to reduce the abandoned shopping cart problem in the City, and to transfer the
cost for managing the problem to the owners of the shopping carts, the attached ordinance
has been developed for Council approval. The ordinance was based on existing shopping
cart ordinances in California, where Business and Professions Code 22435, (attached)
covers all shopping cart issues in the state.
This ordinance is the least prescriptive ordinance developed in the state which is still
expected to be effective. It is designed to reduce to the extent possible the burdensome
command and control effects this type of ordinance could have on local retailers. It also
reduces to the extent possible the additional administrative burden on the City. Staff
believes this "performance oriented" approach will be effective in meeting the goals set
forth by the City Council.
The ordinance has the following key elements:
1. Requires retail establishments that own carts and allow customers to use carts to
register this fact with the City within 60 days of adoption or sooner as part of their
normal business license renewal process. This is not a permit process.
2. Declares abandoned shopping carts a public nuisance and makes it a violation for
shoppers to take the carts off the property.
3. Requires retail establishments with carts to have an "effective shopping cart
nuisance abatement plan" of their own design with minimum requirements:
a. Cart identification - cart's owner and phone number must be displayed.
b. Customer notification - retailers must tell customers cart theft is illegal.
c. Cart theft (removal) prevention - any method deemed cost effective by cart
owners.
d. Cart retrieval - any method deemed cost effective by cart owners.
4. "Effective" is defined as less than five carts abandoned per 12 months of business
license cycle.
5. City will continue to retrieve abandoned carts left over 48 hours and track per cart
cost to City to return it to the owner; this cost will be assessed as a "nuisance
abatement fee" paid by the cart's owner at the time of business license renewal if
there are more than five carts retrieved over the 12 month business license cycle.
6. Retail establishments who contract with an approved provider of cart retrieval
services that operate in Palm Desert three or more times per week collecting carts
are exempt from any fees. (Albertsons, Vons, and Ralphs are already in compliance
with this)
7. Timeline:
a. 60 days from adoption: cart registration
b. Six months from adoption: effective program must be implemented by all
retail establishments —fees for nuisance abatement begin
8. Performance standard: the City does not specify how any retail implements its
effective program. It can be 100% prevention with barricades, fences, security guards, or
W:Wgenda Items�2009-06-25\Shopping Cart Ordinance\Cart Ordinance 6-25-09.1a.docx
Staff Report
Shopping Cart Retrieval Ordinance lis�
June 25, 2009
Page 3 of 3
electronic locking carts, or it can be 100% retrieval service or some combination of the
two. PerFormance standard is 5 or less carts abandoned per establishment per year.
Despite the ordinance, the City will still need to collect and return some abandoned carts to
their owners, especially during the first six months. In order to avoid appropriation of funds
to continue the current contract service, Public Works will take over and create the state
required processes for impounding carts, maintaining an impound lot, providing notification
to cart owners, and tracking the impounded carts. Public Works will also develop the
administrative tracking process to document the actual cost of retrieving the carts, which
the ordinance will enable to City to use for cost recovery. After three months, Public Works
will be able to determine its annual estimated cost for implementing and enforcing the
ordinance and collecting and impounding carts, notifying retailers, and tracking retailer
fees.
The alternative to Public Works performing the work is to fund our current contractor
California Shopping Cart Retrieval Corporation (CART) through appropriation. The annual
cost for this service will be reduced from $14,000 without the ordinance to under $8,000
this fiscal year if the ordinance is approved, and then, once the ordinance is fully in effect
and nuisance abatement fees are collected, a net cost of under $1,500 is expected for
ongoing years.
CART is an ongoing contractor to Vons, Albertsons and Ralphs, so CART already patrols
the entire City picking up carts for their clients. It is expected that if the ordinance is
approved, more local retailers will contract with this service, because it makes sense from
a time and fuel efficiency standpoint to use the same contractor who is already performing
the job locally and not duplicate the time and fuel use.
Submitted By: Departm nt ead:
�l
Gary Rosenblum Mark Gre nwood
Risk Manager Director Public Works
Approv �
J ohlmuth
it Manager
W:Wgenda Items�2009-06-25\Shopping Cart Ordinance\Cart Ordinance 6-25-09.1a.docx
ORDINANCE NO. 1�8�.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, CONCERNING ABANDONED SHOPPING
CARTS IN THE CITY OF PALM DESERT
NOW, THEREFORE, THE CiTY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
5.91.010. Findings and Purpose.
The City of Palm Desert finds that abandoned shopping carts in the City create
potential hazard to the health and safety of the public, and interfere with pedestrian and
vehicular traffic and create a public nuisance. The accumulation of abandoned carts on
public and private property tends to create conditions that reduce property values, and
promote blight and deterioration that result in a public nuisance. This ordinance is
intended to ensure that measures are taken by the owners of shopping carts to prevent
the removal of the shopping carts from the owner's premises, to make removal of the
cart a violation of this code, and to facilitate the retrieval of abandoned shopping carts in
a manner consistent with State law.
5.91.020. Definitions.
A. "Abandoned shopping carts" means any cart that is located outside the
premises or parking lot of a retail establishment which owns the cart, except a cart that
is in the physical possession of a person who has the written consent of the cart's
owner.
B. "Cart owner" means every person who, in connection with the conduct of a
retail establishment owns, rightfully possesses, or makes any cart available to patrons
and/or the public. This shall include the owner's agent or authorized representative.
C. "City" means the City of Palm Desert or its designated representatives.
D. "Contractor" means an authorized independent contractor approved by the
City Council for the purpose of effecting the removal of abandoned shopping carts.
E. "Identified cart" means a shopping cart that has a permanently affixed sign
that identifies, in accordance with California Business and Professions Code Section
22435.1, the owner of the cart or the retailer, or both; notifies the public of the procedure
to be utilized for authorized removal of the cart from the owner's premises; notifies the
public that the unauthorized removal of the cart from the cart owner's premises or cart
owner's parking area or the unauthorized possession of the cart, is a violation of state
law; and lists a valid telephone number or address for returning the cart to the owner or
retailer. If the cart owner operates more than one (1) store, the sign shall identify the
location of the store where the cart is used.
F. "Parking area" means a parking lot or other property provided by a retail
establishment for use by a customer for parking an automobile or other vehicle. In a
ORDINANCE NO. 118�
multi-store complex or shopping center, "parking area" includes the entire parking area
used by or controlled by the complex or center.
G. "Person" means a natural person, firm, association, organization,
partnership, business, trust, corporation, limited liability company, or other entity.
H. "Retail establishment" means any trade establishment selling articles,
commodities, services, or any line of inerchandise where shopping carts are made
available for and used by its customers.
I. "Shopping cart or cart" means a basket that is mounted on wheels or a
similar device generally used in retail establishments by a customer for the purpose of
transporting goods of any kind. Shopping cart afso includes a cart used in a coin-
operated laundry or dry-cleaning retail establishment for purposes of transporting
clothes and necessary cleaning materials.
J. "Effective Shopping Cart Nuisance Abatement Program" means the retail
establishment's ongoing activities to prevent the theft and abandonment of shopping
carts from their parking area, combined with the retail establishment's ongoing activity
to retrieve any abandoned shopping cart owned by the retail establishment from public
or private property within the City within 48 hours.
K. "Unidentified cart" means a shopping cart that is not an identified cart, as
defined above.
5.91.030. Declaration of a Public Nuisance.
Any abandoned shopping cart is declared to constitute a public nuisance that
could impede emergency services, interFere with pedestrian and vehicular traffic, reduce
property values, promote blight and deterioration, comprise an attractive nuisance and
create other hazards to the health, safety, and general welfare of the community.
5.91.040. Mandatory Effective Shopping Cart Nuisance Abatement Program.
It shall be unlawful for any person owning a retail establishment located in the
City where shopping carts are available for customer use not to implement and maintain
an effective shopping cart nuisance abatement program. Effectiveness is defined by
the performance of the retail establishment's program. The retail establishment may use
any reasonable means in any combination to (1) prevent the removal or theft of their
shopping carts from their premises and parking area and subsequent abandonment of
their shopping carts within the City limits, and (2) if their prevention program is not 100%
effective, to retrieve any and all their abandoned shopping carts from within the City
boundaries within 48 hours. The effective program must also have the following
minimum requirements:
A) The retail establishment must register that they own shopping carts for the
use of their customers on their premises with the City Finance Department within 60
days of adoption of the ordinance or at the time of business license application or
renewal, whichever is first, and must have an Effective Shopping Cart Nuisance
Abatement Program within 6 months of adoption of this ordinance or commencing with
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ORDINANCE NO. i�s�
the issuance of a business license or the renewal of the business license, whichever is
first. This registration must include a contact phone number at the retail establishment in
Palm Desert for the person or persons, or job title of the person who will be responsible
for accepting all shopping carts retrieved by the City and returned to the retail
establishment during its normal hours of business.
B) The owner shall provide signage on their premises in a conspicuous
location notifying shopping cart users that removal of shopping carts from the premises
or parking area is prohibited without the written consent of the business owner.
C) The owner of a retail establishment shall mark all shopping carts used in
its business by its customers as required by California Business & Professions Code
Section 22435.1. The owner shall permanently affix a sign to each cart that identifies
the owner of the cart or the retailer, or both; notifies the public of the procedure to be
utilized for authorized removal of the cart from the cart owner's premises; notifies the
public that the unauthorized removal of the cart from the cart owner's premises or cart
owner's parking area or the unauthorized possession of the cart is a violation of state
law; lists a valid telephone number, or address for returning the cart to the cart owner.
1) Each day during which the retail establishment owning more than
five (5) shopping carts has not registered with the City and each
day all of the carts of a retail establishment are not marked as
required by this section shall constitute a separate violation.
D) Customer Outreach. A customer outreach process under which the owner
shall cause additional notice to be provided to customers in addition to the standard
signage and marking of the shopping cart as per Sec.4 (2) and (3) that the removal of
carts from the premises is prohibited and is a violation of state and local law. This
customer outreach notification may include, but is not limited to, f�yers distributed at the
premises, warnings on shopping bags, direct mail, announcements using intercom
systems at the premises, web site. It may also include marketing to customers their
own personal cart for use in lieu of the retail establishment's shopping cart. The exact
means and frequency of this outreach is to be determined by the retail establishment.
E) Either an effective containment program for physically preventing the
shopping carts from being removed from the retail establishment parking area, or an
effective program to retrieve abandoned carts within 48 hours, or both.
For purposes of this section, "effective containment system" shall mean a system
selected by the retail establishment that results in no more than five (5) shopping carts
being removed without the owner's consent from the business premises or parking area
within the 12-month period commencing with the issuance of a business license or the
renewal of the business license.
An "effective retrieval program" shall mean no more than five (5) abandoned shopping
carts are collected by the City or its contractor within the City limits and returned to the
retail establishment within the 12-month period commencing with the issuance of a
business license or the renewal of the business license. There is a rebuttable
presumption that a cart found abandoned somewhere off the premises of the cart's
owner was removed from the premises without the owner's consent and that if the City
3
ORDINANCE NO. , i18�
or its contractor removes it and returns it to the retail establishment, the cart was
abandoned for more than 48 hours.
If a retait establishment has a valid and operational contract with a contractor
recognized by the City to retrieve abandoned shopping carts and return them to the
retail establishment on an ongoing and regular basis of at least 3 times per week, the
owner automatically is deemed to have an Effective Shopping Cart Nuisance
Abatement Program and exempt from any Nuisance Abatement and Administrative
Fees per Sec.7.
5.91.050. Removal of Shopping Carts from Retail Establishments Prohibited.
It is unlawful for any person other than a cart owner or its authorized
representative to remove a cart from the premises of the owner's retail establishment,
unless the cart owner expressly authorizes its removal in writing.
5.91.060. Retrieval of Abandoned Carts from within the City.
The City, or its contractor, may retrieve any abandoned shopping cart and return
the cart to its owner if it has been abandoned outside the parking area of the retail
establishment and not retrieved by the owner or their contractor after 48 hours. The
owner of the shopping cart must make a store employee available to be present during
normal store hours to receive the returned carts and document that they were returned.
The City shall recover its administrative cost for this activity through a Nuisance
Abatement Administrative Fee.
5.91.070. Nuisance Abatement and Administrative Fees.
1. Nuisance Abatement Fee. Retail establishments that have ineffective
abatement programs are subject to an annual nuisance abatement fee at the time of
renewal of their business license equal to the cumulative cost to the City for retrieval
and return of the retail establishment's abandoned shopping carts over a 12-month
period commencing with the issuance of a business license or the renewal of the
business license.
2. Administrative fee. An administrative fee to cover the City's administrative
cost for the activities performed in Sec 7(1.) above by the City may also be imposed
upon the owners of abandoned carts at the time of business license renewal. Such fee
shall not exceed the City's reasonable estimate of actual cost for such services.
5.91.080. Penalty for Violation.
Violation of any provision of this section is a violation of this article and the City
may pursue any available remedy provided under the Code for a code violation,
including the issuance of an administrative citation under Section 1.12.010 of the Palm
Desert code.
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ORDINANCE NO. 1187
1. Notwithstanding any other enforcement action allowed under this Code,
the City Council may prescribe the civil fine for any person owning a retail establishment
who is given a civil citation for not having established an Effective Shopping Cart
Nuisance Abatement Program pursuant to Section 4, above.
5.91.090. Severability Clause.
If any provision, paragraph, word or section of this article is invalidated by any
court of competent jurisdiction, the remaining provisions, paragraphs, words, and
sections shall not be affected and shall continue in full force and effect.
5.91.100. Publication.
The City Clerk shall certify to the passage and adoption of this ordinance and
shall cause the same to be published once in The Desert Sun, a newspaper of the
general circulation, printed, and published in the County of Riverside and circulated
within the City of Palm Desert, and the same be in force and effect thirty (30) days after
its adoption.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm
Desert, California, at its regular meeting held this day of , 2009, by
the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPEIGEL, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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Ordinance No. 1187
CALIFORNIA CODES
BUSINESS AND PROFESSIONS CODE
SECTION 22435-22435.8
22435. As used in this article:
(a) "Shopping cart" means a basket which 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.
(b) "Laundry cart" means a basket which is mounted on wheels and
used in a coin-operated laundry or drycleaning retail establishment
by a customer or an attendant for the purpose of transporting fabrics
and the supplies necessary to process them.
(c) "Parking area" means a parking lot or other property provided
by a retailer for use by a customer for parking an automobile or
other vehicle.
22435.1. The provisions of Section 22435.2 shall apply when a
shopping cart or a laundry cart has a sign permanently affixed to it
that identifies the owner of the cart or the retailer, or both;
notifies the public of the procedure to be utilized for authorized
removal of the cart from the premises; notifies the public that the
unauthorized removal of the cart from the premises or parking area of
the retail establishment, or the unauthorized possession of the
cart, is a violation of state law; and lists a valid telephone number
or address for returning the cart removed from the premises or
parking area to the owner or retailer.
22435.2. It is unlawful to do any of the following acts, if a
shopping cart or laundry cart has a permanently affixed sign as
provided in Section 22435.1:
(a} To remove a shopping cart or laundry cart from the premises or
parking area of a retail establishment with the intent to
temporarily or permanently deprive the owner or retailer of
possession of the cart.
(b) To be in possession of any shopping cart or laundry cart that
has been removed from the premises or the parking area of a retail
establishment, with the intent to temporarily or permanently deprive
the owner or retailer of possession of the cart.
(c) To be in possession of any shopping cart or laundry cart with
serial numbers removed, obliterated, or altered, with the intent to
temporarily or permanently deprive the owner or retailer of
possession of the cart.
(d) To leave or abandon a shopping cart or laundry cart at a
location other than the premises or parking area of the retail
establishment with the intent to temporarily or permanently deprive
the owner or retailer of possession of the cart.
(e) To alter, convert, or tamper with a shopping cart or laundry
cart, or to remove any part or portion thereof or to remove,
obliterate or alter serial numbers on a cart, with the intent to
temporarily or permanently deprive the owner or retailer of
possession of the cart.
(f) To be in possession of any shopping cart or laundry cart while
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Ordinance No. 1187
that cart is not located on the premises or parking lot of a retail
establishment, with the intent to temporarily or permanently deprive
the owner or retailer of possession of the cart.
22435.3. Any person who violates any of the provisions of this
article is guilty of a misdemeanor.
The provisions of this section are not intended to preclude the
application of any other laws relating to prosecution for theft.
22435.4. This article shall not apply to the owner of a shopping
cart or laundry cart or to a retailer, or to their agents or
employees, or to a customer of a retail establishment who has written
consent from the owner of a shopping cart or laundry cart or a
retailer to be in possession of the shopping cart or laundry cart or
to remove the shopping cart or laundry cart from the premises or the
parking area of the retail establishment, or to do any of the acts
specified in Section 22435.2.
22435.5. (a) In any civil proceeding, any shopping cart or laundry
cart which has a sign affixed to it pursuant to Section 22435.1 shall
establish a rebuttable presumption affecting the burden of producing
evidence that the property is that of the person or business named
in the sign and not abandoned by the person or business named in the
sign.
(b) In any criminal proceeding, it may be inferred that any
shopping cart or laundry cart which has a sign affixed to it pursuant
to Section 22435.1 is the property of the person or business named
in the sign and has not been abandoned by the person or business
named in the sign.
22435.7. (a) The Legislature hereby finds that the retrieval by
local government agencies of shopping carts specified in this section
is in need of uniform statewide regulation and constitutes a matter
of statewide concern that shall be governed solely by this section.
(b) A shopping cart that has a sign affixed to it in accordance
with Section 22435.1 may be impounded by a city, county, or city and
county, provided both of the following conditions have been
satisfied:
(1) The shopping cart is located outside the premises or parking
area of a retail establishment. The parking area of a retail
establishment located in a multistore complex or shopping center
shall include the entire parking area used by the complex or center.
(2) Except as provided in subdivision (i) , the shopping cart is
not retrieved within three business days from the date the owner of
the shopping cart, or his or her agent, receives actual notice from
the city, county, or city and county of the shopping cart's discovery
and location.
(c) In instances where the location of a shopping cart will impede
emergency services, a city, county, or city and county is authorized
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Ordinance No. 1187
to immediately retrieve the shopping cart from public or private
property.
(d) Any city, county, or city and county that impounds a shopping
cart under the authority provided in subdivisions (b) and (c) is
authorized to recover its actual costs for providing this service.
(e) Any shopping cart that is impounded by a city, county, or city
and county pursuant to subdivisions (b) and (c) shall be held at a
location that is both:
(1) Reasonably convenient to the owner of the shopping cart.
(2) Open for business at least six hours of each business day.
(f) A city, county, or city and county may fine the owner of a
shopping cart in an amount not to exceed fifty dollars ($50) for each
occurrence in excess of three during a specified six-month period
for failure to retrieve shopping carts in accordance with this
section. An occurrence includes all shopping carts impounded in
accordance with this section in a one-day period.
(g) Any shopping cart not reclaimed from the city, county, or city
and county within 30 days of receipt of a notice of violation by the
owner of the shopping cart may be sold or otherwise disposed of by
the entity in possession of the shopping cart.
(h) This section shall not invalidate any contract entered into
prior to June 30, 1996, between a city, county, or city and county
and a person or business entity for the purpose of retrieving or
impounding shopping carts.
(i) Notwithstanding paragraph (2) of subdivision (b) , a city,
county, or city and county may impound a shopping cart that otherwise
meets the criteria set forth in paragraph (1) of subdivision (b)
without complying with the three-day advance notice requirement
provided that:
(1) The owner of the shopping cart, or his or her agent, is
provided actual notice within 24 hours following the impound and that
notice informs the owner, or his or her agent, as to the location
where the shopping cart may be claimed.
(2) Any shopping cart so impounded shall be held at a location in
compliance with subdivision (e) .
(3) Any shopping cart reclaimed by the owner or his or her agent,
within three business days following the date of actual notice as
provided pursuant to paragraph (1) , shall be released and surrendered
to the owner or agent at no charge whatsoever, including the waiver
of any impound and storage fees or fines that would otherwise be
applicable pursuant to subdivision (d) or (f) . Any cart reclaimed
within the three-business-day period shall not be deemed an
occurrence for purposes of subdivision (f) .
(4) Any shopping cart not reclaimed by the owner or his or her
agent, within three business days following the date of actual notice
as provided pursuant to paragraph (1) , shall be subject to any
applicable fee or fine imposed pursuant to subdivision (d) or (f)
commencing on the fourth business day following the date of the
notice.
(5) Any shopping cart not reclaimed by the owner or his or her
agent, within 30 days of receipt following the date of actual notice
as provided pursuant to paragraph (1) , may be sold or disposed of in
accordance with subdivision (g) .
22435.8. This article shall not invalidate an ordinance of, or be
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Ordinance No. 1187
construed to prohibit the adoption of an ordinance by, a city,
county, or city and county, which ordinance regulates or prohibits
the removal of shopping carts or laundry carts from the premises or
parking area of a retail establishment except to the extent any
provision of such an ordinance expressly conflicts with any provision
of this article.