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File Number: 20-512 <br />WHEREAS, many consumers use third party food delivery companies to place orders with <br />restaurants for delivery and takeout, and these third party delivery companies charge restaurants <br />fees; service agreements between some restaurants and third party delivery companies provide <br />that the company charges the restaurant 30% or more of the purchase price per order; and <br />WHEREAS, restaurants, and particularly restaurants that are small businesses with few <br />locations, have limited bargaining power to negotiate lower fees with third party delivery <br />companies given the high market saturation of these companies, and the dire financial straits <br />small business restaurants are facing during this period of emergency; and <br />WHEREAS, given that only a few companies in the marketplace provide such delivery <br />services, small restaurants that do not operate their own delivery service resort to contracting with <br />third party food delivery companies as a means to compete in the marketplace; and <br />WHEREAS, if retail food providers close as a result of high fees from third party food <br />delivery companies, their workers will lose employment, thereby affecting their ability to provide <br />for their families; and <br />WHEREAS, during the COVID-19 emergency, many residents rely on food delivery and <br />may not be able to receive delivered food if the fees charged by third party food delivery <br />companies are too high; and <br />WHEREAS, limiting the per-order fees at 15% will accomplish the legitimate public <br />purpose of ensuring the continued operation of local restaurants during the period of emergency; <br />the 15% limit is based on the findings and experience of other California cities that have already <br />adopted 15% fee limits as reasonable emergency regulations; and <br />WHEREAS, the Declaration is temporary in nature and only intended to promote stability <br />and safe and healthy operations within the restaurant and food markets in the City during the <br />COVID-19 pandemic outbreak, and to prevent avoidable business closures thereby serving the <br />public peace, health, safety, and public welfare and ensuring jobs and economic vitality within the <br />City, while also preventing further spread of the virus. <br />NOW, THEREFORE THE CITY OF SAN LEANDRO CITY COUNCIL RESOLVES that the <br />above recitals are true and correct and made a part of this resolution. <br />BE IT FURTHER RESOLVED that it is hereby declared and ordered that the Amendment <br />Number One to the Declaration of the Director of Emergency Services of the City of San Leandro <br />amending the time frame for the temporary limit of 15% on fees charged by third party food <br />delivery companies to support restaurants in San Leandro during the COVID-19 pandemic, <br />issued by the Director of Emergency Services, is hereby confirmed. <br />BE IT FURTHER RESOLVED by the City Council that the temporary limit of 15% on fees <br />charged by third party food delivery companies shall be in effect until the end of the local state of <br />emergency. <br />BE IT FURTHER RESOLVED by the City Council that: <br />Page 3 City of San Leandro Printed on 11/11/2020