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File Number: 20-337 <br />Note - this may occur within a month in Alameda County. <br />4. Enforcement - Typically a civil matter, with restaurants providing written notice to the delivery <br />company and a request for reduction in charges if their fees are not being appropriately limited. <br />EMERGENCY DECLARATION <br />At the meeting of July 6, 2020, the City Council provided comments and direction to the City Manager, <br />acting as Director of Emergency Services, on the issuance of a declaration establishing rules and <br />regulations to enact a temporary limit on fees charged by third party food delivery companies. Under <br />emergency powers, the City Manager issued a declaration on July 8, 2020 establishing such temporary <br />limit with the following terms: <br /> <br />1. It shall be unlawful for a Third-Party Food Delivery Service to charge a covered establishment a fee <br />per online order for the use of its services that totals more than 15% of the purchase price of such <br />online order. <br />2. For purposes of this order, the following definitions apply: <br />a. "Covered Establishment" means a restaurant that offers, in a single commercial transaction <br />over the internet, whether directly or through a Third Party Food Delivery Company, the sale and <br />same-day delivery of food to customers from one or more retail locations within the City of San <br />Leandro. Covered Establishment will not include any restaurant that meets the definition of a <br />Formula Restaurant, as set forth below. <br />b. "Online order" means an order placed by a customer through a platform provided by a Third <br />Party food delivery company for delivery or pickup within the City. <br />c. "Purchase price" means the menu price of an online order. Such term therefore excludes taxes, <br />gratuities and any other fees that may make up the total cost to the customer of an online order. <br />d. “Formula Restaurant” means a type of restaurant establishment that has eleven or more other <br />locations in operation, or with local land use or permit entitlements already approved, located <br />anywhere in the world. In addition to the eleven establishments either in operation or with local <br />land use or permit entitlements approved for operation, the business maintains two or more of <br />the following features: a standardized array of merchandise, a standardized facade, a <br />standardized decor and color scheme, uniform apparel, standardized signage, a trademark or a <br />servicemark. <br />e. "Third Party Food Delivery Company" means any website, mobile application or other internet <br />service that offers or arranges for the sale of food and beverages prepared by, and the <br />same-day delivery or same-day pickup of food and beverages from, no fewer than 20 separately <br />owned and operated food service establishments. <br />3. The Director of Emergency Services, or designee, is authorized to implement the order and issue <br />any necessary guidance or rules consistent with the order. <br />4. The order took effect on July 13, 2020 and will terminate at such time as the Health Officer of <br />Alameda County amends or terminates the order prohibiting restaurants from offering dine-in <br />service or that prohibition otherwise expires, so that dine-in service is then allowed, or the <br />termination of the local state of emergency, whichever occurs first; or as otherwise terminated, <br />modified or extended by the San Leandro City Council. For the purposes of the order, the <br />restoration of outdoor-only dining does not constitute the restoration of dine-in service. <br />5. If a Third-Party Food Delivery Company charges a covered establishment fees that violates this <br />order, the covered establishment shall provide written notice to the Third Party Food Delivery <br />Company requesting a refund; the refund shall be paid within seven calendar days. If the Third Party <br />Page 4 City of San Leandro Printed on 7/15/2020 <br />359