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19. Shopping Cart survey ~ City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777-3333 CommlUlity Development Department Summary Agenda Item No. d Agenda Date: October 16, 2007 APPLICATION SUMMARY Review results of Shopping Cart Survey and staff recommendations. RECOMMENDATION \...., · Require new stores locating in Cupertino to outline their plans for shopping cart retention as part of the use permit process. The plan should address signage, arrangements for off-site retrieval, and parking lot design. · Direct staff to continue to monitor the problem. H.the number of shopping carts left in neighborhoods increases, then staff will bring back options for a program to supplement the private efforts that is full cost recovery. BACKGROUND Based on a complaint from the Garden Gate neighborhood about abandoned shopping . carts, staff presented a report to the City Council on May 15, 2007 outlining several policy alternatives. The Conncil supported the staff recommendation to work with store managers to seek their input regarding solutions for cart retrieval. The prelpise of this action is that businesses have a vested interest to keep carts from leaving their property. Other options deemed less desirable included citing offenders, requiring stores to install disabling mechanisms, or enacting an ordinance that would provide' mechanisms for store retrieval and compliance~ ANALYSIS On May 30th, a letter and survey were e-mailed, faxed, or mailed to the 16 stores that utilize shopping carts in Cupertino. With extensive follow-up, twelve responses were received representing 75% of the audience. A copy of the survey and corresponding cover letter, as well as the results can be found on Attachments A and B. '--' 19 -1 Shopping Cart Survey Results Page 2 013 October 16,2007 Of the stores with shopping carts,. slightly more than: a third are grocery stores. The vast majority of respondents (83%) have a program to retrieve carts. The average number of carts lost per store, per month is just under three, at 2.7 carts, with the number ranging from zero to seven. ~ Most respondents contract with one of two cart retrieval services - Marion and Mendoza. The others rely on store staff for retrieval. None of the respondents use disabling mechanisms citing the high cost of installation and maintenance. When asked to rate possible solutions to abandoned carts, r~pondents were least supportive of requiring disabling mechanisms (2.1 out of range of 0-5) and were most supportive of a program whereby the City would charge for back-up retrieval service after a period of voluntary compliance (4 out of 5.) Comments and suggestions provided by the store managers and community members included consideration of bi- . lingual signage and a token system for.cart usage. In addition to the survey, staff requested input from the Cupertino Chamber of Commerce, the two cart services being utilized, and the Northern California Grocer's Association. Staff also evaluated a model program in S~ Mateo. San Mateo Program .J San Mateo has taken a proactive approach to persistent issues with abandoned shopping carts. The City issues a vendor contract for cart retrieval services and makes the monthly payments, which are then prorated back to 40 businesses in a consortium. Businesses can opt out of the consortium, but must then develop and implement a comprehensive plan for cart retrieval. Only tWo businesses have choSen to opt out. The program is advertised on the city' s websit~ along with the phone number for cart retrieval. Since San Mateo implemented this program in 1998, abandoned carts have gone down from 1,000 a month to 800 a month. While this program has been deemed a success, it is questionable whether the significant outlay of city resources are worth the potential results, which could be considered modest given the nine years it has been in existence. The benefits of pursuing a San Mateo model pr~gram are outweighed by the costs consequently staff does not recommend p~suing such a program at this time. Summary The scope of Cupertino's shopping cart problem is inherently smaller than San Mateo (16 stores v. 42) and localized to particular areas, primarily Garden Gate. Windshield . surveys show that private efforts to retrieve carts are working fairly well. While carts -.--/ 19 -2 Shopping Cart Survey Results Page 3 of 3 October 16, 2007 \......., can be found on the street, they do get picked up with regularity, which is substantiated by individual store cart counts. The results of the shopping cart survey were shared with the Economic Development Committee on July 25. The committee concurred with staff that immediate action was not ~ecessary based upon the data received. Staff recommends that new stores locating in Cupertino outline their plans for shopping cart retention as part of the use permit procesS. This will convey the importance that the city places on cart containment; and places responsibility for the problem squarely on the shoulders of the private sector. A trial run of this approach has been used with Marukai, a new grocery store in the Market Place center. To the extent that further action is required, it should be limited to supplementing private efforts on a cost recovery basis. If the p:roblem persists staff will evaluate options for supplementing the private recovery services that are currently in place. Prepared by: Kelly Kline, Redevelopment/Economic Development Manager L Approved by: ~ Steve Piasecki Director of Community Development David w. Knapp City Manager g:planning/Kelly / citycouncilstaffreport Shopping Carts ~ 19 -3 Attachment A: ShoDDin2 Cart Survey & Cover Letter May 23, 2007 Bob Brusco Longs Drugs 10455 S. De Anza Boulevard Cupertino, CA 95014 Regarding: Shopping Cart Survey Dear Mr. Brusco: In responSe to neighborhood complaints, the Cupertino City Council has asked staff to research the issue of abandoned shopping carts. Your input is very important to help us better understand the problem and potential solutions. Attached is a I-page survey . We would appreciate you filling this out by June Sda. Additionally, we would welcome the opportunity to meet with you in person at your store. To schedule an appointment.. please call: Kelly Kline, Economic Development Manager: 777-3286, or, Piu Ghosh. Assistant Planner: 777-3277 Thank you in advance for your partnership in fostering a good relationship between Cupertino's business and residential community. We are pleased that the Cupertino Chamber of Commerce will also be collaborating with us as we explore solutions to this. issue. Sincerely, Kelly Kline Economic Development Manager Piu Ghosh Assistant Planner ..J ----/ -./ 19 -4 Cupertino Shopping Cart Survey:.... May 2007 ~ Name: Phone: Store Name: Title: E-mail: Address: 1) Does your store provide shopping carts for customers? Yes: _ No: 2) Do you have a program to retrieve abandoned shopping carts? Yes: _ No:_ If yes, how many carts to you lose per month, on average? _ 3) If yes, pleaSe check all methods that apply to your store: I contract with a service to pick them up Name of Service Provider: I rely on store staff to monitor the parking lot and retrieve carts Our carts employ a disabling mechanism. after a certain radius Other: please describe, or add any comments L 4) The following ideas are being considered to better m~age this problem. Please indicate your support for each item by circling a number: Strongly Oppose Oppose Noetral ' SUPPOrt Strongly SUPPort a) Cite offenders (people who remove the carts from the premises) 1 2 3 4 5 b) Require stores to install disabling m.echanisms on shopping carts as a condition of permit issuance. 1 2 3 4 5 c) City notifies store of abandoned cart and allows them to respond. After a designated grace peri~ city retrieves cart and charges for the service. 1.2 3 4 5 d) Require stores to prepare shopping cart management plan, including installation of parking lot signage, and displaying a phone # for retrieval on the carts. . 1 2 3 4 5 L Please fax completed survey to: 408-777-3333 . Thank youl 19-5 Attachment B: Cuoertino ShoUUin2 Cart Survey Results Response Rate: Staff identified .16 stores that provide shopping carts to their customers. Twelve responses were received representing 75% of the audience. 1) Does your store provide shopping carts for customers? Yes: 92% 2) Do you have a program to retrieve abandoned shopping carts? . Yes: 83% No: 17% If yes, how. many carts to you lose per month, on average? 2.7 (range: 0-7). 3) If yes, please check all methods that apply to your store: 73% I contract with a service to pick them up > Mendoza Cart Service 25% > Marion Recovery Services 75% 75% o 18% I rely on store staff to monitor the parking lot and retrieve carts Our carts employ a disab~ing mechanism after a certain.radius Other: please describe, or add any comments > StorestatT supplements off-site retrieval > Cart run is long to better contain carts 4) The following ideas are being considered to better manage this problem. Please indicate your support for each item by circling a number: Strongly Oppose Oppose 1 . 2 Nuetral .3 . Support 4 Strongly SuPPOrt 5 a) Cite offenders: 3.6 (people who remove the carts from the premises) b) Require stores to install disabling mechanisms: 2.1 c) City notifies store of abandoned cart and allows them to respond. After a designated grace period, city retrieves cart and charges for the service: 4 d) Require stores to prepare shopping cart management plan: 2.9 (including installation of parking lot signage, and displaying a phone # for retrieval on the carts) ----./ J J 19-6