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File #: 20-509    Version: 1 Name: Amnd 1 to Declaration Limiting Third-Party Delivery Fees - SR
Type: Staff Report Status: Filed
In control: City Council
Meeting Date: 11/16/2020 Final action: 11/16/2020
Enactment date: Enactment #:
Title: Staff Report for a City of San Leandro City Council Resolution Approving Amendment No. 1 to the Declaration of the Director of Emergency Services of the City of San Leandro Establishing a Temporary Limit of 15% on Fees Charged by Third Party Food Delivery Companies to Support Restaurants in San Leandro During the COVID-19 Pandemic
Sponsors: Tom Liao
Related files: 20-512
Title
Staff Report for a City of San Leandro City Council Resolution Approving Amendment No. 1 to the Declaration of the Director of Emergency Services of the City of San Leandro Establishing a Temporary Limit of 15% on Fees Charged by Third Party Food Delivery Companies to Support Restaurants in San Leandro During the COVID-19 Pandemic

Staffreport
SUMMARY AND RECOMMENDATIONS

Staff recommends that the City of San Leandro City Council approve Amendment No. 1 to the Declaration of the Director of Emergency Services, amending the timeframe of the temporary limit of 15% on fees charged by third party food delivery companies, which will continue through the local state of emergency.

BACKGROUND AND ANALYSIS

Following the initiation of the Alameda County Shelter-in-Place Order on March 17, 2020, many San Leandro businesses, including restaurants, caf?s, and other food and beverage businesses, were required to be closed, or limited to pick up service only, in order to protect employees and customers and limit the spread of the COVID-19 virus. The orders' restrictions devastated local businesses, particularly small service, food, and other direct customer serving businesses.

During this time, online ordering and delivery of food has become a critical lifeline to many restaurants and food businesses. In order to assist with the ordering and delivery process, many food businesses utilize third party food delivery companies, such as DoorDash, GrubHub, Postmates, and UberEats. These food delivery services are vital to our residents and businesses alike. However, many businesses find that the delivery company fees, which normally can be over 30%, are onerous and make it hard for them to cover their costs and make any profit.

On July 9, 2020, the Director of Emergency Services of the City of San Leandro issued a declaration establishing a temporary limit of 15% on fees charged by third-party food delivery companies ("Declaration"). Such Declaration was establis...

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