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City of San Leandro <br />Meeting Date: November 16, 2020 <br />Staff Report <br />Agenda Section:File Number:20-509 CONSENT CALENDAR <br />Agenda Number:8.J. <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 a City of San Leandro City Council Resolution Approving <br />Amendment No. 1 to the Declaration of the Director of Emergency Services of <br />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 <br />Leandro During the COVID-19 Pandemic <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City of San Leandro City Council approve Amendment No. 1 to the <br />Declaration of the Director of Emergency Services, amending the timeframe of the temporary limit of <br />15% on fees charged by third party food delivery companies, which will continue through the local state <br />of emergency. <br />BACKGROUND AND ANALYSIS <br />Following 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, were <br />required to be closed, or limited to pick up service only, in order to protect employees and customers <br />and limit the spread of the COVID-19 virus. The orders’ restrictions devastated local businesses, <br />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 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 food delivery services are vital to our residents and businesses alike. However, many <br />businesses find that the delivery company fees, which normally can be over 30%, are onerous and <br />make it hard for them to cover their costs and make any profit. <br />On July 9, 2020, the Director of Emergency Services of the City of San Leandro issued a declaration <br />establishing a temporary limit of 15% on fees charged by third-party food delivery companies <br />(“Declaration”). Such Declaration was established to be effective until restaurants were permitted to <br />resume dine-in service, or the termination of the local state of emergency, whichever occurred first. <br />Page 1 City of San Leandro Printed on 11/11/2020