pages: CityCouncil/2020-09-15.pdf, 19
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CityCouncil | 2020-09-15 | 19 | Mayor Ezzy Ashcraft inquired the current rate, to which the Development Manager responded the rate varies. The City Attorney stated the matter placed before Council is a regular ordinance and the rates are frozen as of the date of the staff report publication to prevent gaining. Councilmember Vella expressed concern about capping the fee for the consumer; stated many companies have hidden fees elsewhere; there are differences in ordering directly through a restaurant website versus DoorDash; inquired how the capping works and whether there are ways around the fee cap; questioned whether the matter may be bifurcated; expressed concern about price shifting; inquired whether Council can regulate such matters. The City Attorney responded the ordinance contains a prohibition on charging a higher price than listed at the retail establishment; stated proposed language would include: "it shall be unlawful for a third party food delivery service to increase any fee, cost or commission or establish any new fee, cost or commission with respect to customers beyond those established on September 3rd 2020;" should Council desire additional flexibility, a provision could be added to allow the City Manager to implement additional administrative regulations to monitor gaining; staff is recommending broad prohibitions. Councilmember Vella stated local companies are trying to coordinate with restaurants; inquired whether there is a way to distinguish local from third party companies. Mayor Ezzy Ashcraft stated the goal is to protect both small businesses and residents impacted by the pandemic; it is possible smaller community-run delivery companies would not charge high percentages. Councilmember Vella expressed concern about price gouging; stated that she wants to ensure the person providing service gets paid; inquired whether costs may be modified due to mode-shifting under the ordinance. The City Attorney responded one additional exception included in the ordinance guards against unconstitutional takings; any company, whether in or out of town, has the ability to demonstrate proof that the limitations established constitute a unconstitutional taking; stated the provision ensures that companies have the ability for a fair return; any company able to demonstrate proof is able to seek an exemption from the City. Councilmember Oddie stated another way to incentivize is for allowing a higher fee for companies that practice mode-shifting in Alameda. Mayor Ezzy Ashcraft outlined the staff recommendation; expressed support for moving forward with the matter and modifying the ordinance at a later time should the need arise. Regular Meeting Alameda City Council 16 September 15, 2020 | CityCouncil/2020-09-15.pdf |