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THE CITY OF <br />°L! .. CITY COUNCIL AGENDA REPORT <br />PLEASANTON. $ <br />October 6, 2020 <br />Economic Development <br />TITLE: APPROVAL OF AN URGENCY ORDINANCE ESTABLISHING A <br />TEMPORARY 15 PERCENT CAP ON COMMISSION CHARGES BY <br />THIRD -PARTY FOOD DELIVERY SERVICES ON PLEASANTON <br />RESTAURANTS DURING COVID-19 <br />SUMMARY <br />The City Council will consider adopting an urgency ordinance establishing a temporary <br />15 percent cap on commission fees charged by third -party food delivery companies on <br />local restaurants during the declared local emergency due to COVID-19. As a result of <br />the public health restrictions imposed by county and state health authorities, restaurants <br />in Pleasanton have been limited to take-out and delivery offerings, and some outdoor <br />dining at a reduced capacity, which has resulted in a severe loss of income to <br />Pleasanton restaurants, especially those that have not been able to implement the <br />infrastructure or staff needed for take-out and delivery services or which may not have <br />suitable space for outdoor dining. Particularly during COVID-19, many consumers are <br />using third -party food delivery services to place orders with local restaurants which <br />charge the restaurants up to 30 percent of the purchase price of the order. Placing a 15 <br />percent cap on these delivery charges will help to manage the costs incurred by <br />Pleasanton restaurants while still supporting the financial structure of the food delivery <br />services. <br />RECOMMENDATION <br />Adopt an urgency ordinance establishing a temporary 15 percent cap on commission <br />charges by third -party food delivery services on Pleasanton restaurants during declared <br />local emergency due to COVID-19. <br />FINANCIAL STATEMENT <br />There is no financial impact to the City. <br />