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HomeMy WebLinkAbout75B - SHOPPING CART CONTAINMENT FEES CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: REQUEST FOR COUNCIL ACTION DECEMBER 4, 2006 TITLE: PUBLIC HEARING - ADOPTION OF RESOLUTION ESTABLISHING FEE FOR SHOPPING CART CONTAINMENT PROGRAM APPROVED o As Recommended o As Amended o Ordinance on 1st Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For Ck (}~tL- C Y MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION Adopt a resolution approving an annual fee for implementing the shopping cart containment program. DISCUSSION On October 2, 2006, an ordinance was approved by the City Council establishing specific regulations for every business utilizing more than five shopping carts for their customer use. In addition to identifying labels on each cart, the businesses must submit, and have approved, a shopping cart control plan to prevent unauthorized removal of the carts from the owner's premises, and specific time frames for retrieval of carts that may be taken from the premises. The ordinance further requires a fee, not to exceed the City's cost, to reimburse the City for its reasonable cost to administer and manage the activities mandated by the program. This includes the review of each business's proposed shopping cart control plan. Also included in the proposed fee is funding for the City's cost to undertake efforts to ensure compliance with the new regulations. Pursuant to state law, the fee will not reimburse the City for its own retrieval of carts. A study has been undertaken by staff to determine a reasonable fee amount. The shopping cart control program will be administered on a five year schedule, with plans reviewed and approved every five years. The City's costs will be higher each fifth year of the program, so the annual fee has been adjusted to reflect this fact. Based upon the study, staff recommends an annual fee of $550. 758-1 Resolution Establishing Fee for Shopping Cart Containment Program December 4, 2006 Page 2 FISCAL IMPACT The proposed annual fee of $550 will, over a five year period, conservatively pay for the costs to administer the shopping cart control program. Staff will propose adjustment to the fee, if necessary. APPROVED AS TO FUNDS AND ACCOUNTS: ~L l Jay M. Trevino . ~utive Director Planning & Building Agency 't\\t) ,,~S' il '" r . ~ \\ ~ 0 ~ Francisco Gutierrez~~ Executive Director ~ Finance & Management Services Agency DH:rb Rb\reports\Shopping Cart Fees Reso.cc 758-2 bk:11/28/06 RESOLUTION A RESOLUTION FROM THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING A SHOPPING CART CONTAIMENT PROGRAM FEE AND ADDING THIS FEE TO THE UNIFORM SCHEDULE OF MISCELLANEOUS FEES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Section 33-217 of the Santa Ana Municipal Code (Code), adopted by Ordinance No. NS-2725, provides that the City Council may establish, by resolution, an annual fee to administer and manage the City's shopping cart containment program established by said ordinance. This fee will be paid by each owner whose business uses more than five (5) shopping carts. B. The Council finds that as to this fee: 1. The funds generated by this fee is to be used exclusively to administer and manage the shopping cart containment program established by Article IX of Chapter 33 of the Code. 2. There is a reasonable relationship between the use of these fees and the retailers on which the fee is imposed, in that the administration and management of the City's shopping cart containment program creates an impact on the City, and the fees that will be charged by the City are an appropriate response to this impact in that they will be used to dedicate staff efforts to ensure that the retailers who pay this fee act in accordance with the City's shopping cart containment program. It is also to the benefit of those paying the fee, i.e. retailers who use more than five (5) shopping carts, to have dedicated efforts by City staff to ensure that their competitors comply with the City's shopping cart containment program. 3. There is a reasonable relationship between the impacts the City experiences from abandoned shopping carts in the public right-of- way, and the retailers on whom the fee is imposed because the fee 758-3 Resolution No. 2006-XXX Page 1 of 2 is based upon the cost of administration, implementation and monitoring of the shopping cart containment program. 4. This fee will take effect January 1,2007. 5. The fee for this service would not duplicate any existing fee, charge, levy, or other toll currently collected by the City or any public agency. 6. The monies collected by this fee would be directed into a fund that would be used only to reimburse the City for the cost of administration, implementation and monitoring of the shopping cart containment program. C. Based upon the City's study the annual cost of administering, implementing, and monitoring the shopping cart containment program exceeds the annual fee to be imposed of $550.00 annually per premises. A study confirming these facts in greater detail is on file with the Clerk of the Council and is incorporated herein by reference as though fully set forth. D. Based upon all the testimony, reports and other evidence submitted on this matter, this City Council makes the above-specified findings. The Request for Council Action dated December 4, 2006 regarding this resolution, together with Ordinance No. NS-2725 and the Request for Council Action which accompanied said Ordinance are incorporated herein by this reference as though fully set forth. E. Unless otherwise indicated, the definitions set forth in section 33-210 of the Code shall govern the application and interpretation of this resolution. Section 2. An annual $550.00 per premises fee is hereby established for each owner as that word is defined in Article IX of Chapter 33 of the Code. This annual fee will be collected as provided in Article IX or Chapter 33 of the Code. Section 3. Without further action of the City council this fee shall be incorporated into the City's miscellaneous Fee Schedule. Section 4. If any charge, fee, service charge, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Resolution No. 2006-XXX Page 2 of 2 758-4 Section 4. This Resolution shall take effect immediately, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of ,2006. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2006-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 758-5 Resolution No. 2006-XXX Page 3 of 2 758-6