2005 AGN JUN 21 I02 - Laserfiche WebLink

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ITEM #2 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JUNE 21, 2005 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: AMER JAKHER, P.E., CITY ENGINEER SUBJECT: APPROVE AND ADOPT A RESOLUTION ESTABLISHING A REDEMPTION FEE FOR THE RECOVERY OF COSTS FOR RETRIEVAL AND STORAGE OF ABANDONED SHOPPING CARTS AND LAUNDRY CARTS DATE: JUNE 14, 2005 BACKGROUND: In 1999, the City Council adopted Ordinance No. 0-06-99 (codified as Chapter 6.18 in the Colton Municipal Code), which regulates abandoned shopping carts and laundry carts. Section 6.18.090, subdivision "E" of the ordinance provides that the City Council may establish, by resolution, a redemption fee to recover the City's costs for removal, storage and related administrative procedures regarding abatement of abandoned shopping carts and laundry carts. The authority for establishing a redemption fee for abatement of abandoned carts is provided by California Business and Professions Code section 22435.7, subdivision (d). To date, the City has not established a redemption fee as provided in Section 6.18.090. The City has been subsidizing all costs for abatement of abandoned carts out of the General Fund. However, with the increasing pressure on local government budgets to do more with less, City staff believes that it is no longer cost effective for the City to continue to bear these costs. The City has the authority to impose fees, charges and rates under the police power granted by Article XI, Section 7 of the California Constitution and under the provisions of Government Code section 66016. In addition to providing authority to impose fees, State law also requires that fees imposed by the City may not exceed the estimated reasonable cost of providing the service for which a fee is charged. Along with this restriction on fee amounts, Section 66016 of the Government Code requires the City to hold a public hearing prior to adopting fees and make available to the public the data indicating the amount of estimated costs required to provide the service for which a fee is being charged. DISCUSSION/ANALYSIS: City staff has reviewed the costs associated with abatement of abandoned shopping carts and laundry carts. These costs include staff time for the Streets Division personnel to retrieve abandoned carts and deliver them to the designated location for storage, which is currently the City's corporate yard. The abatement costs also include staff time for administrative personnel to provide the required notice to cart owners and subsequent follow-up regarding the process for claiming retrieved carts. In addition, the City also incurs vehicle costs, including fuel and maintenance, for pick up and delivery of abandoned carts.