On March 21, 2017, the City Council introduced the attached Ordinance (See Attachment) amending Title 7, Health and Sanitation, of the Municipal Code to:

• Add permissible physical measures or related deterrents for businesses to utilize to prevent the removal of shopping carts from business premises; and
• Provide a process and grounds for revocation of abandoned cart prevention plan approval; and
• Require that business owners without an abandoned cart prevention plan install disabling devices on shopping carts to prevent removal.

Staff recommends that the City Council adopt the attached Ordinance that would amend Chapter 7.22 “Shopping Carts” to add further enforcement mechanisms to prevent and reduce abandoned shopping carts throughout the City. 

The City adopted an ordinance on August 8, 2006 adding Chapter 7.22 “Shopping Carts” to the Union City Municipal Code (the “Shopping Cart Ordinance”) in order to regulate the removal of shopping carts from the premises of retail establishments.  The City adopted the Shopping Cart Ordinance as the abandonment of shopping carts within the City was a source of visual blight, reduced the aesthetic appearance of the City and constituted a nuisance.  Furthermore,  the removal and subsequent abandonment of shopping carts on both private and public property, including streets and other rights of way, can lead to the impediment of traffic, including emergency services, and constitutes a threat to the public health, safety and welfare.

The Shopping Cart Ordinance currently prohibits the removal of shopping carts from a business premises unless the removal is for the purposes of repair, maintenance or disposal.  Additionally, individuals are prohibited from abandoning shopping carts on public or private property, aside from the premises of the shopping cart owner. 

The Shopping Cart Ordinance also places restrictions on businesses.  Specifically, all shopping carts must have a sign that identifies the owner of the cart, the address and phone number of the owner for return, a statement that removal of the cart from the business premises is a violation of the law, and the procedure for authorized removal from the business premises.  Furthermore, businesses are required to include a notice at all public entrances and exits that removal of shopping carts from the premises is prohibited. 

Businesses that permit the use of shopping carts outside of buildings or enclosed areas are also required to submit an abandoned cart prevention plan to the Public Works Director.  The plan must provide a procedure to notify customers that removal of carts from the premises is prohibited, provide a procedure for retrieval of abandoned carts, and provide physical measures or other deterrents to prevent the removal of carts from the premises.  The Public Works Director must approve the abandoned cart prevention plan annually.  Businesses can appeal the Public Works Director’s decision to deny an abandoned cart prevention plan. 

The City can also recover administrative costs and impose fines from businesses that fail to retrieve an abandoned cart.  However, the City’s ability to recover administrative costs and impose fines is limited by state law.  The Shopping Cart Ordinance is consistent with state law regarding the imposition of administrative costs, imposition of fines, and disposal of carts.   

The City Council approved the Union City Municipal Code Update Project (the “Project”) and appointed an Ad Hoc Council Advisory Subcommittee (“Ad Hoc Subcommittee”) to provide guidance for the Project.  The City Council appointed Councilmember Duncan and Vice Mayor Gacoscos to the Ad Hoc Subcommittee. 

The City Attorney’s office has led the Project and held several meetings with the Ad Hoc Subcommittee to update the Municipal Code.  The Ad Hoc Subcommittee expressed interest in amending the Municipal Code to include stronger enforcement mechanisms in order to reduce abandoned shopping carts throughout the City. 

Effect of Text Amendments

The proposed amendments to the Shopping Cart Ordinance would create additional enforcement mechanisms and make other minor modifications.  The proposed amendments are included in Exhibit A to the attached Ordinance, and in redline format in Exhibit B, and include the following:

• Add permissible physical measures or related deterrents for businesses to utilize to prevent the removal of shopping carts from business premises.

• Provide a process and grounds for revocation of abandoned cart prevention plan approval.  The Public Works Director may revoke an abandoned cart prevention plan on the following grounds:

• A cart or carts from the same retailer have been found on public property and impounded by the City on eight or more occasions within a six-month period.
• The owner has failed to comply with the Shopping Cart Ordinance.
• The owner made a knowingly false statement or failed to disclose relevant information in an application, amendment or report to the City regarding the abandoned cart prevention plan. 

The owner has an opportunity to reapply for an approved abandoned cart prevention plan after six months following revocation. 

• Require that business owners without an abandoned cart prevention plan install disabling devices on shopping carts to prevent removal.

There are no direct fiscal impacts as a result of adopting the attached Ordinance.

Staff recommends that the City Council waive reading the full text of the Ordinance, conduct the second reading of the title of the proposed Ordinance, and adopt the Ordinance amending Chapter 7.22 “Shopping Cart” to amend requirements for establishments providing shopping carts.  The Ordinance will become effective 30 days from the date of adoption.