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