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City of San Leandro <br />Meeting Date: July 20, 2020 <br />Staff Report <br />Agenda Section:File Number:20-337 CONSENT CALENDAR <br />Agenda Number:8.M. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Tom Liao <br />Community Development Director <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Confirming the <br />Declaration of the Director of Emergency Services of the City of San Leandro <br />Establishing a Temporary Limit of 15% on Fees Charged by Third Party Food <br />Delivery Companies to Support Restaurants in San Leandro During the <br />COVID-19 Pandemic <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City of San Leandro City Council confirm a Declaration of the Director of <br />Emergency Services of the City of San Leandro Establishing a Temporary Limit of 15% on Fees <br />Charged by Third Party Food Delivery Companies to Support Restaurants in San Leandro During the <br />COVID-19 Pandemic. <br />BACKGROUND <br />Since the initiation of the Alameda County Shelter-in-Place order on March 17, 2020, many San Leandro <br />businesses, including restaurants, cafés, and other food and beverage businesses, have been closed, <br />or limited to pick up service only, in order to protect employees and customers and limit the spread of <br />the COVID-19 virus. The orders’ restrictions have devastated local businesses, particularly small <br />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 restaurants <br />and food businesses. In order to assist with the ordering and delivery process, many food businesses <br />utilize third party food delivery companies, such as DoorDash, GrubHub, Postmates, and UberEats. <br />These companies generally provide a means for businesses to market themselves, list their menu, <br />receive orders online, and arrange for delivery or pickup, allowing the businesses to offset the direct <br />staff costs associated with these tasks. These food delivery services are vital to our residents and <br />businesses alike and the City wishes to encourage their expansion. Even after in-restaurant dining is <br />allowed to resume, it is expected that many patrons will continue to rely on food delivery services due to <br />individual comfort level and safety concerns. <br />There are several fees associated with using the food delivery services, some paid by <br />the restaurant, and others paid directly by the consumer. These fees vary by company and a number of <br />Page 1 City of San Leandro Printed on 7/15/2020 <br />356