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File Number: 20-317 <br />they can work to assist restaurants in San Leandro and City staff will be continuing these <br />discussions in the coming weeks. <br />City staff have surveyed other communities in the area, and have found that while some cities <br />have enacted a fee limit, others have considered it and decided not to impose a cap, and others <br />have not had a formal discussion on the matter at this time. <br />- California jurisdictions that have imposed a limit include: <br />o San Francisco, Los Angeles, Marin County (unincorporated areas), Santa Cruz, <br />Santa Monica, Glendale <br />- California jurisdictions that have considered a limit but have not implemented one include: <br />o San Jose, Sacramento, Oakland <br />(Note these lists are based on information staff have been able to gather and are not <br />exhaustive) <br />The following are typical fee limit terms in the Bay Area: <br />1. Fee Limit - Typically ranges from 10-20% of the total order cost, with most at 15%. May <br />also be able to specify which types of fees are limited, such as service fees rather than <br />delivery fees. <br />2. Applicability - For many cities, the fee limit only applies to small food establishments (with <br />5 or fewer locations). <br />3. Timeframe - The fee limits typically end when restaurants are permitted to offer dine-in <br />service. Note - this may occur within a month in Alameda County. <br />4. Enforcement - Typically a civil matter, with restaurants providing written notice to the <br />delivery company and a request for reduction in charges if their fees are not being <br />appropriately limited. <br />NEXT STEPS <br />Staff requests that the City Council provide comment and feedback as to whether and how they <br />would like to require a temporary limit on the fees charged by third-party food delivery companies. <br />Based on this, the City Manager, acting as Director of Emergency Services, may issue a <br />declaration under his emergency powers to enact such a limit. The new requirement could then go <br />into effect within a short timeframe, and staff would work to notify delivery companies and <br />restaurants of the change. <br />In the coming weeks, City staff will continue conversations with the food delivery companies about <br />how they can work to proactively assist restaurants in San Leandro, through additional fee <br />reductions, more flexible/inclusionary agreement terms, technical assistance, and promotional <br />programs. <br />On an ongoing basis, City staff works to assist restaurants and other food businesses and <br />connect them with resources during these difficult times. Staff shares available resources through <br />the San Leandro Next blog and City website and connects businesses with grant opportunities <br />and organizations that can assist them, such as the Alameda County Small Business <br />Development Center. City and Chamber staff are outreaching to businesses, using this time to <br />establish and build relationships with small businesses across the City. Through outreach, staff <br />gains valuable feedback on what resources City businesses are utilizing (with many successfully <br />Page 4 City of San Leandro Printed on 7/1/2020 <br />458