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City of San Leandro <br />Meeting Date: July 6, 2020 <br />Staff Report <br />Agenda Section:File Number:20-317 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Tom Liao <br />Community Development Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for Consideration of a Temporary Limit on Fees Charged by Third <br />Party Food Delivery Companies to Support Restaurants in San Leandro during <br />the COVID-19 Pandemic <br />SUMMARY AND RECOMMENDATIONS <br />Staff requests that the City Council provide comments and direction on a temporary cap on the <br />fees charged by third-party food delivery companies. Based on such comments and feedback, <br />the City Manager, acting as the City’s Director of Emergency Services, may issue a declaration <br />establishing rules and regulations under his emergency powers to enact such a limit. The <br />benefits and risks of such a declaration are discussed further below. <br />In addition, Economic Development staff will continue conversations with the food delivery <br />companies about proactive measures they can take to assist San Leandro restaurants. Staff will <br />also continue to work in a variety of ways to help restaurants and food businesses to reopen, <br />better connect with their customers, access resources, and be more sustainable and successful <br />long-term. <br />BACKGROUND <br />Since the initiation of the Alameda County Shelter-in-Place order on March 17, 2020, many San <br />Leandro businesses, including restaurants, cafés, and other food and beverage businesses, have <br />been closed, or limited to pick up service only, in order to protect employees and customers and <br />limit the spread of the COVID-19 virus. The orders’ restrictions have devastated local <br />businesses, particularly small service, food and other direct customer serving businesses. <br />During this time, online ordering and delivery of food has become a critical lifeline to many <br />restaurants and food businesses. In order to assist with the ordering and delivery process, many <br />food businesses utilize third party food delivery companies, such as DoorDash, GrubHub, <br />Postmates, and UberEats. These companies generally provide a means for businesses to <br />Page 1 City of San Leandro Printed on 7/1/2020 <br />455