REPORT TO COUNCIL
SUBJECT
Title
Action on an Emergency Ordinance Establishing a Temporary Limit on Third-Party Food Delivery Service Fees During the COVID-19 Emergency [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]
Report
BACKGROUND
The City of Santa Clara has been severely impacted by the ongoing COVID-19 Public Health Emergency (COVID-19) and proclaimed a Local State of Emergency on March 11, 2020. The effects on the global economy and supply chains are impacting many Bay Area small businesses and restaurants. Santa Clara is committed to supporting small businesses and restaurants during this time.
On April 8, 2020, the City Council approved the Small Business Assistance Grant Program to offer immediate financial assistance to nonprofits and small businesses to aid in maintaining their business and workforce during the County of Santa Clara's Shelter in Place Order of March 16, 2020. On June 9, 2020 the City Council passed a resolution to support outdoor dining at local restaurants to benefit from a free and streamlined permitting process, and on July 28, the City Manager in her role as Director of Emergency Services, authorized consideration of specific land uses for the duration of the Local State of Emergency for small businesses to operate outdoors.
Under the July 13, 2020 Statewide Public Health Officer Order, indoor dining, movie theaters, family entertainment centers and additional indoor operations in all counties, including Santa Clara County are not allowed, amid a statewide spike on COVID-19 cases, restricting restaurants to outdoor dining, pick-up and delivery.
While some restaurants can pivot and offer outdoor dining, the primary source of revenue continues to come from takeout orders which often requires the businesses to rely on third-party food delivery service companies for convenient, contactless delivery of restaurant meals. City staff has conducted restaurant visits and learned that although so...
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