REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
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Adopt an Emergency and Interim Ordinance No. 4229, Establishing Limitations on Third-Party Food Delivery Fees
Five Affirmative Votes are required to adopt per Charter Section 501
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Statement of Issue:
On February 1, 2021, the City Council directed that staff prepare an emergency Ordinance limiting the delivery fees that can be charged by third-party food delivery application services to fifteen percent (15%) of the cost of food purchased for delivery, with a five percent (5%) cap on the non-delivery charges, while COVID-19 restrictions remain on indoor and outdoor dining.
These interim regulations were directed given that the COVID-19 crisis has placed extreme pressures on restaurant operations. Due in large part to the pandemic restrictions that have been placed on indoor and outdoor dining, normal operational procedures have been disrupted, and in response, restaurants have had to rely heavily on third party delivery apps such as Postmates, Grubhub, DoorDash, and Uber Eats, which can charge fees as high as 30% for use of their delivery services.
Per the Huntington Beach Charter, the City Council can approve the proposed fee limitations that technology companies can charge to restaurant owners via an emergency ordinance, which would become effective immediately if at least five (5) affirmative votes endorse the measure. Also, as an urgency ordinance, the proposed regulations will expire automatically after 120 days.
Financial Impact:
This emergency Ordinance will have limited costs related to the staff time needed to enforce these provisions while it remains in place for the 120 days.
Recommended Action:
recommendation
Adopt Ordinance No. 4229, "An Emergency and Interim Ordinance of the City of Huntington Beach Establishing Limitations on Third-...
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