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Ordinance Page 4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The recitals above are true and correct and are incorporated by reference. Section 2. The City Council finds and declares that there is a current and immediate threat to public health, safety and/or welfare, and this Urgency Ordinance must be adopted as an urgency matter necessary for the immediate preservation of the public peace, health, and safety. This finding is based upon the facts set forth and referenced herein, including the recitals above, the staff report, any oral and written testimony at the October 6, 2020, City Council meeting, and the entirety of the record before the City Council. Based on such findings, facts and circumstances, the City Council finds that this Urgency Ordinance should be adopted as an urgency measure for the immediate preservation of the public peace, health and safety, and that this Urgency Ordinance is an emergency response measure aimed at ensuring the vitality and return of the restaurant industry after closure and limited operations, and should go into effect immediately as described below. Section 3. Food Service Delivery Commissions Cap and Prohibitions. 1. It shall be unlawful for a third party food delivery service to charge a covered establishment a fee or commission per online order for the use of its services that totals more than fifteen percent (15%) of the purchase price of such online order. 2. A third party food delivery service shall offer customers the option to, as a part of an online order for delivery, authorize a tip or gratuity to be paid to food delivery service workers and any covered establishment from which the customer places an order through the third -party food delivery service. It shall be unlawful for a third -party food delivery service to reduce the compensation, including any tip or gratuity, paid to any food delivery service worker, or to reduce any tip or gratuity authorized by a customer to be paid to any covered establishment as a result of the prohibitions stated in this Ordinance. 3. For purposes of this Ordinance, the following definitions apply: a. "Covered establishment" means a restaurant, eating or drinking establishment, or similar food facility that offers, in a single commercial transaction over the internet, whether directly or through a third party food delivery service, the sale and same-day delivery of food to customers from one or more retail locations within the city.