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10 <br /> THE CITY OF <br /> -�- "" CITY COUNCIL AGENDA REPORT <br /> pLEASANTON <br /> March 1 , 2022 <br /> Economic Development <br /> TITLE: ADOPT AN ORDINANCE EXTENDING THE PROVISIONS OF <br /> URGENCY ORDINANCE No. 2211 AND URGENCY ORDINANCE NO. <br /> 2219 ESTABLISHING A 15 PERCENT CAP ON COMMISSION <br /> CHARGES BY THIRD-PARTY FOOD DELIVERY SERVICES ON <br /> PLEASANTON RESTAURANTS FOR AN ADDITIONAL SIX-MONTH <br /> PERIOD <br /> SUMMARY <br /> The City Council adopted an urgency ordinance (No. 2211) on October 6, 2020, <br /> establishing a temporary 15 percent cap on commission charges by third-party food <br /> delivery services on Pleasanton restaurants during the declared local emergency due to <br /> COVID-19. The fee cap on delivery charges aimed to help restaurants manage costs <br /> during the local emergency when indoor dining was temporarily restricted, and take-out <br /> and delivery services were prevalent. In preparation for the urgency ordinance to expire <br /> on October 6, 2021, one year from the effective date, City Council at its meeting on <br /> August 17, 2021 , considered an extension of the ordinance as restaurants were <br /> continuing to face challenges due to health order restrictions resulting from COVID-19. <br /> City Council adopted Ordinance 2219, extending the provisions of Urgency Ordinance <br /> No. 2211 for a period of six months. The ordinance is set to expire on April 21, 2022, or <br /> upon termination of the local state of emergency, whichever comes first; or as otherwise <br /> terminated, modified, or extended by the City Council. <br /> Although dining establishments have returned to full indoor operations, food delivery <br /> from local restaurants continues to be a substantial portion of restaurants' business, <br /> particularly as COVID-19 variants, such as Delta and Omicron, are prevalent. City staff <br /> has received input from local restauranteurs that they are still recovering from the <br /> closures in the first half of 2021, and an extension of the fee cap on commission charges <br /> will assist in revenue recovery. <br /> STAFF RECOMMENDATION <br /> Adopt an ordinance extending the provisions of urgency Ordinance 2219 to continue a <br /> 15 percent cap on commission charges by third-party food delivery services on <br /> Pleasanton restaurants for six months, or as otherwise terminated, modified, or extended <br /> by the City Council. <br /> FINANCIAL STATEMENT <br /> There is no financial impact to the City. <br />