Reso 2020-142 Temp limit on food delivery Amndmt 1

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WHEREAS, to reduce the spread of the virus and protect the public health, the Shelter In Place Order limits the indoor dining capacity of restaurants in the County and places strict operating procedures and safety measures on such dining; and WHEREAS, the City of San Leandro, pursuant to its police powers, has broad authority to maintain public peace, health, and safety of its community and preserve quality of life; and WHEREAS, in adopting the Emergency Declaration, the Director of Emergency Services took action pursuant to his authority under Government Code Section 8634 and San Leandro Municipal Code Section 3-4-130(a); and WHEREAS, the Declaration was issued because of the propensity of the virus to spread person -to -person and also because the virus physically is causing property loss or damage due to its proclivity to attach to surfaces for prolonged periods of time; and WHEREAS, restricting restaurant operations has placed a sudden and severe financial strain on many restaurants, particularly those that are small businesses that already operate on thin margins, adding to financial pressures in the industry that predate the COVID-19 crisis; and WHEREAS, the limited amount of indoor seating (and limited or no outdoor seating for most) and the need to implement complex and costly safety measures and staff training continues to significantly limit restaurants' ability to cover their operating costs, staff costs, and rent, which were designed for full capacity operations; and WHEREAS, it is in the public interest to take action to maximize restaurant revenue from the takeout and delivery orders that, with the exception of some limited dining operations, are currently the sole source of revenue for these small businesses to enable restaurants to survive this crisis and remain as sources of employment and neighborhood vitality within the City; and WHEREAS, many consumers use third party food delivery companies to place orders with restaurants for delivery and takeout, and these third party delivery companies charge restaurants fees; service agreements between some restaurants and third party delivery companies provide that the company charges the restaurant 30% or more of the purchase price per order; and WHEREAS, restaurants, and particularly restaurants that are small businesses with few locations, have limited bargaining power to negotiate lower fees with third party delivery companies given the high market saturation of these companies, and the dire financial straits small business restaurants are facing during this period of emergency; and WHEREAS, given that only a few companies in the marketplace provide such delivery services, small restaurants that do not operate their own delivery service resort to contracting with third party food delivery companies as a means to compete in the marketplace; and WHEREAS, if retail food providers close as a result of high fees from third party food delivery companies, their workers will lose employment, thereby affecting their ability to provide for their families; and RESOLUTION NO. 2020-142 2