Title
Shopping Cart Retrieval Fee Increase (Ordinance S-44077)
Description
Request to authorize the City Manager, or his designee, to establish a $50 per shopping cart retrieval fee. On June 20, 2017, the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee voted to recommend City Council approval of an increase in program fees; staff posted the proposed $50 retrieval rate, as required by Arizona Revised Statute 9-499.15, on the City Clerk's website from July 11 to Sept. 9, 2017.
Report
Summary
In 2007, City Council authorized the City Manager to establish a citywide Shopping Cart Retrieval Program under a cost recovery model. The program was designed to retrieve abandoned carts, which were not marked with permanently affixed signs as specified by State law, left outside the premises or parking areas of retail establishments. Over the past 10 years, approximately 35,500 carts were retrieved from neighborhoods and pubic right-of-ways, which helped to reduce resident complaints and remove blight from the community. In addition, retailers have made significant improvements regarding the management of their cart inventories, and the number of cart retrievals has decreased from nearly 10,000 in 2007 to just over 2,700 in fiscal year 2016-2017.
The current $25 shopping cart retrieval fee, which was last adjusted by City Council in 2012, was intended to recover the program's operational and associated overhead expenses. This fee encouraged retailers to develop and implement new measures to retrieve their own carts. Since fiscal year 2012-2013, the number of billable carts retrieved has decreased by 80 percent. This has made it difficult for the Shopping Cart Retrieval Program to fully recover its costs; the program recovered 72 percent of its direct costs in fiscal year 2015-2016, and only 28 percent in fiscal year 2016-2017.
As a further incentive to the remaining retailers to manage their cart inventories and increase recovery of the program's operational and overhead expenses, staff recommends the shopping cart retrieval fee be raised from $25 to $50 per cart.
Concurrence/Previous Council Action
The Sustainability, Housing, Efficiency and Neighborhoods Subcommittee recommended City Council approval of this item on June 20, 2017 by a vote of 3-1.
Public Outreach
In accordance with Arizona Revised Statute 9-499.15, a public notice was posted on the City Clerk's website from July 11 to Sept. 9, 2017 regarding the proposed $50 per shopping cart retrieval fee.
Department
Responsible Department
This item is recommended by Deputy City Manager Mario Paniagua and the Neighborhood Services Department.