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Ordinance <br />Page 2 <br />J. On July 13, 2020, the State Public Health Order issued an Order closing <br />all indoor restaurant dining statewide, among other indoor operations. <br />K. As a result of the public health emergency and the orders issued by health <br />authorities, restaurants in the city have been limited to takeout and delivery offerings <br />(plus limited outdoor dining if available but often with reduced capacity) which has led to <br />a sudden and severe income loss and financial strain for Pleasanton's restaurants, <br />particularly those who operated on thin margins before the pandemic and those who did <br />not have robust takeout and delivery infrastructure or outdoor seating capacity. <br />L. Many consumers use third -party applications and websites to place orders <br />with restaurants for delivery and takeout and these applications and websites typically <br />charge the restaurants between 10 and 30 percent of the purchase price of the order as <br />a commission. <br />M. Restaurants have limited bargaining power to negotiate lower fees with <br />third -party platforms, given the high market saturation of third -party platforms and the <br />dire financial straits restaurants are facing in this COVID-19 emergency. <br />N. State anti -gouging laws and State of California Executive Order N-44-20 <br />provide protections against profiteering and unscrupulous business practices but do not <br />provide any protections in the market for food delivery services. <br />O. If retail food providers raise their costs or close as a result of high fees <br />from third -party delivery services, their workers will lose employment, thereby affecting <br />their ability to provide for their families, and the community will lose access to essential <br />food services for its residents. <br />P. Continuity of operations among the city's restaurants is critical for the <br />delivery of essential food services to the residents of Pleasanton and to sustain these <br />sources of employment and neighborhood vitality within the city. <br />Q. Several Bay Area jurisdictions, including San Francisco, Oakland, <br />Berkeley, Fremont, San Leandro, Dublin, and Livermore have experienced significant <br />increases in delivery fees from third -party delivery services that also operate in <br />Pleasanton and have recently enacted similar measures to cap the fees they may <br />charge at 15 percent. <br />R. The City has heard from local businesses who attest to increasing delivery <br />fees from third -party delivery services looking to leverage their position during the <br />COVID-19 emergency. <br />S. Capping delivery service fees at 15 percent per order, will achieve the <br />