pages: CityCouncil/2020-09-15.pdf, 18
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CityCouncil | 2020-09-15 | 18 | The City Attorney stated the City of Chicago is actively considering limiting consumer charges; the City of Santa Monica has said consumer charges are an issue, but has not taken final action; expressed concern about delivery apps taking in revenue from two sources: restaurants and customers; stated should the City adopt an ordinance that only limits the charge in one place and not the other, residents could face consequences, such as increased charges; UberEats is the one example where charges have increased for residents following a jurisdiction capping delivery charges; staff is recommending capping charges to both restaurants and freezing in place customer charges as of September 3rd. Vice Mayor Knox White expressed support for the matter being brought for discussion; stated app based services are shifting revenues and income from people performing hard work to people that run apps; noted Proposition 22 on the upcoming ballot relates to paying app based staff; stated restaurant delivery will continue; the matter should not be overly controversial; expressed support for the will of the majority as long as the restaurants fees are capped; stated divers will suffer in the end if the ability to charge fees is capped; the impact of the delivery services is huge; stated the fee should be clear and upfront. Councilmember Oddie inquired whether tips go to the driver. The Development Manager responded in the affirmative; stated most companies have stopped the practice of yielding tip garnishments from; staff has included a clause to ensure the practice is not allowed. Councilmember Oddie stated that he would prefer Option 3: freeze the customer fees; businesses will likely cost shift; restaurants have expressed concern; the demand for service is present and the need will be met; Uber and Lyft threatened to pull out of California, which fell through; this is a temporary emergency ordinance. Councilmember Daysog stated Alameda has a rare opportunity to set a freeze for both restaurants and customers; expressed support for the fee freeze for restaurants and customers. Mayor Ezzy Ashcraft questioned the reason other progressive cities in the area do not cap fees; stated the cap seems like the right thing to do; some cities have bicycle delivery of food; creative alternatives could arise if Uber and/or Lyft pull out of the California market; urged residents to personally pick up to-go food orders as often as possible; those who cannot pick up orders need services such as these and the value should not be minimized; bold steps must be taken. Councilmember Oddie moved approval of approving the emergency ordinance, setting the limit at 15% for fees charged at restaurants and freezing customer fees at the current rate per the recommendation of the City Attorney. Regular Meeting Alameda City Council 15 September 15, 2020 | CityCouncil/2020-09-15.pdf |