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HomeMy WebLinkAbout019-R-22 Terminating Limits On Third-Party Food Delivery Service Fees02/28/2022 19-R-22 A RESOLUTION TERMINATING LIMITS ON THIRD -PARTY FOOD DELIVERY SERVICE FEES 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 that he extended multiple times; 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 extended the state of emergency multiple times due to the persistence of the COVID-19 outbreak; and WHEREAS, in order to reduce the spread of the COVID-19 virus and protect public health, restaurants in the City were limited in their dine -in services, making restaurants reliant on delivery, drive -through, and take-out options; and WHEREAS, many consumers use third -party applications and websites to place orders with restaurants for delivery and takeout, and these third -party platforms --1 Page 1 of 3 Doc ID: 74dfed5666f63c2ba454170c3b31f94ef6642749 19-R-22 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, the City Council previously adopted Resolution 119-R-20, which capped the per -order fees at 15% in order to ease the financial burden on struggling restaurants during the emergency while not unduly burdening third -party platforms, as this fee is reasonable and third -party platforms continue to earn significant profits; and WHEREAS, due to the availability of a vaccine, cases of COVID-19 have decreased in the City since Resolution 119-R-20 was adopted; and WHEREAS, COVID-19 testing, tracing, treatment and vaccines are widely available throughout the City; and WHEREAS, restaurants in the City are widely open and resuming normal operations; and WHEREAS, the cap on third -party delivery fees established by Resolution 119-R-20 was meant to ease the financial burden on struggling restaurants during the pandemic and was not meant to be permanent; and WHEREAS, the City Council believes that the need for a cap on third - party delivery fees is coming to an end. NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT: SECTION 1: The foregoing recitals are hereby found as fact and incorporated herein by reference. --2 Page 2 of 3 Doc ID: 74dfed5666f63c2ba454170c3b31f94ef6642749 19-R-22 SECTION 2: The cap on third -party food delivery service fees that totals more than 15% of the purchase price of such online order that was established by Resolution 119-R-20 shall be terminated. SECTION 3: This Resolution 19-R-22 will be in full force and effect after the date of its passage and approval in the manner provided by law, on March 1, 2022. Attest: Stephanie Mendoza, City Clerk Adopted: February 28th, 2022 , 2021 lsaAz�%l ez�jj Daniel Biss, Mayor Approy d as to form: Nicholas E. Cummings, Corporation Counsel —3— Page 3 of 3 Doc ID: 74dfed5666f63c2ba454170c3b31f94ef6642749