HomeMy WebLinkAbout059-R-20 Terminating the Limits on Third-Party Food Delivery Service Fees on September 14, 20206/23/2020
59-R-20
A RESOLUTION
TERMINATING THE LIMITS ON THIRD -PARTY FOOD DELIVERY
SERVICE FEES ON SEPTEMBER 14, 2020
WHEREAS, the City of Evanston, Cook County, Illinois ("City"), is a home
rule unit of government and, pursuant to the provisions of Section 6(a) of Article VII of
the Illinois Constitution, may exercise any power and perform any function pertaining to
its government and affairs; and
WHEREAS, on March 13, 2020, the President of the United States
declared a national emergency concerning the Novel Coronavirus Disease ("COVID-
19") outbreak; and
WHEREAS, on March 9, 2020, the Governor of Illinois issued a disaster
proclamation for the State of Illinois concerning the COVID-19 outbreak; and
WHEREAS, on March 15, 2020, the Mayor declared a state of emergency
due to the COVID-19 outbreak pursuant to Section 9-9-3 of the City Code; and
WHEREAS, the Evanston City Council has extended the state of emergency due
to the persistence of the COVID-19 outbreak; and
WHEREAS, in March and April 2020, the Governor of Illinois issued
Executive Orders mandating individuals living in Illinois shelter at home and requiring all
non -essential business activities and operations to cease; and
59-R-20
WHEREAS, in order to reduce the spread of the COVID-19 virus and
protect public health, the shelter -at-home orders prohibit restaurants in the City from
offering dine -in services, limiting restaurants to delivery, drive -through, and take-out
options only; and
WHEREAS, many consumers use third -party applications and websites
to place orders with restaurants for delivery and takeout, and these third -party platforms
charge restaurant fees; service agreements between some restaurants and third -party
platforms provide that the platform charges the restaurant 10% of the purchase price
per order, while some agreements provide for higher per -order fees; and
WHEREAS, restaurants and especially small business restaurants, have
limited bargaining power to negotiate lower fees with third -party platforms, given the
high market saturation of third -party platforms, and the financial pressures small
business restaurants are facing during the state of emergency; and
WHEREAS, the Evanston City Council previously capped the per -order
fees of third -party food delivery platforms at 15% in order to accomplish the legitimate
public purpose of easing the financial burden on struggling restaurants during this
emergency while not unduly burdening third -party platforms and provided a termination
date of July 13, 2020 for the service fee cap; and
WHEREAS, given the continued COVID-19 outbreak, the Evanston City
Council has found it appropriate to extend the current state of emergency; and
WHEREAS, it is necessary to extend the termination date of the per -order
fees of third -party delivery platforms beyond the July 13, 2020 date.
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59-R-20
NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: The prohibition on third -party food delivery services charging
a covered establishment a fee per online order for the use of its services that totals
more than 15% of the purchase price of such online order shall terminate on September
14, 2020.
SECTION 2: This Resolution 59-R-20 will be in full force and effect from
and after the date of its passage and approval in the manner provided by law.
Attest:
C�
Devon Reid, City Clerk
Adopted: July 13th
, 2020
J'A M\e-�
Stephen H. Hagerty, Mayor
Approved as to form:
Kelley A. Gandurski, Corporation Counsel
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