Title
Introduction of Ordinance Amending Alameda Municipal Code Section 6-62 (Third-Party Food Delivery Services) of Article XVIII (Fair Housing and Tenant Protections) of Chapter VI (Businesses, Occupations and Industries) to Continue Placing Limits on Charges Imposed by Third-Party Food Delivery Services; Define Core Product Offering as a Service; and Other Amendments. (Community Development 24161823)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
Yibin Shen, City Attorney
EXECUTIVE SUMMARY
In September 2020, City Council unanimously approved an ordinance establishing a 15 percent of purchase price limit on charges imposed by "Third-Party Food Delivery Services," and prevented Third-Party Food Delivery Service from increasing any fee, cost, or commission, or establishing any new fee, cost or commission, with respect to customers beyond those established on September 3, 2020. That ordinance was effective for the duration of the local COVID-19 pandemic state of emergency.
After the City Council lifted the City's local state of emergency effective October 18, 2022, it directed staff to modify the Third-Party Food Delivery Services ordinance (Ordinance) to extend its duration until the State of California's State of Emergency is rescinded. Effective February 28, 2023 the State of California is expected to terminate its COVID-19 emergency declaration, thereby ending the cap on food delivery service changes at that time, unless the City Council takes further action.
Local restaurants continue to be impacted by the effects from the pandemic. For many Alameda restaurants, and particularly for those which do not have large areas available for outdoor dining, delivery and take-out services are now a primary source of income. In parallel, the number of consumers using food delivery platforms to place orders with restaurants has increased significantly and is expected to continue to increase in the coming years.1 ...
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