Recommendation to declare ordinance amending the Long Beach Municipal Code by adding Chapter 5.95, related to third-party food delivery service fees; and declaring that this ordinance shall take effect immediately, read and adopted as read. (Citywide) (Emergency Ordinance No. ORD-21-0005)
Um. We have two more items. Two more. What's your next. Item? 24 is a communication from City Attorney Recommendation to declare ordinance amending Title five of the Long Beach Municipal Code related to third party food delivery service fees and declaring the urgency thereof. Read the first time and lead over to the next regular meeting of the City Council for Final Reading Citywide. Thank you. Let's hear from staff. Thank you. Mayor Monica Kalita from the city attorney's office from present Monica. Good evening, City Council. For your request, we've prepared an emergency ordinance to add Chapter 5.95 third party food delivery service fees to the Long Beach Municipal Code. This ordinance would prohibit a third party food delivery service from doing the following charging a retail food establishment a delivery fee totaling to more than 15% of the total purchase price of each online order, charging a retail food establishment any amount designated as a delivery fee for an online order that does not involve the delivery of food or beverages. Charging a customer any purchase price for a food or beverage item that is higher than the price set by the retail food establishment and or reducing the compensation rates paid to drivers or garnishing gratuities due to these limitations. This ordinance would also require third party food delivery services to disclose, in plain conspicuous language, any amount charged to a customer at the time a final price is disclosed. A violation of the ordinance could result in civil and or criminal penalties. And lastly, this ordinance would be reported on every 90 days by the city manager or designee to determine whether the chapter is still necessary based on the city's recovery from the health and economic impacts of the COVID 19 pandemic, at which point in time the city council will determine the chapter's expiration date. Thank you. And that concludes my report. Vice mayor, this city attorney on this item, we will require two votes. The first vote would be on the urgency of the ordinance that would go into effect this evening or today. And then the second vote on the ordinance itself, you will see the ordinance come back at your next meeting on February 2nd for the second reading , as we will pass it both as an urgency ordinance and as a regular ordinance, and with that staff and the city attorney's office. Stand by for questions. Thank you. Let's go to let's go to public comment on this. Is there any public comment? Yes. Our first speaker is Karen Goh. You're in. Go. Yes. Hey, that's. The killer on the 908 and Stacey's district. I'm also a member of the board on the Long Beach Restaurant Association. So we're in support of this item 24. Reducing delivery fees to 15%. A big reason is, for example, if. We sell a burger for $10, the delivery companies take $3. That leaves you with $7. Most restaurants in California. Make about 6% profitability. So they're already eating into a lot of the profitability. And one would ask, why use those delivery services? Well, the reason why you have to is because they have a monopoly on that delivery service and they have the platforms where people. Can order from from their phones. So it's no. Choice. So we support it. It favors quick serve pizza places, places that are big on delivery. Doesn't do much for full service, sit down restaurants. So we really. Need to move at some point to getting patios reopened again. But we support this motion. Thank you. Think your next speaker is Jeff Roe. Jeff Brown. Hi. My name is Jeff from the owner of the Hideaway Restaurant and Ponzu. And rounding third all here in Long Beach. As Kiran said, I'll make this short. It's it's almost impossible with doing take out to make a profit as it is. In fact, it is impossible. We're mostly doing it for our staff with these 30%. We actually lose a significant amount of money, at least on these transactions. You know, and the fact that you're not allowing third party services to raise prices above our prices or take it out is another substantial win for not only us, but for the customers that use our food. We just ask that if we do pass this and we get into a point where we are open at full, that you consider keeping it on as in the city of Los Angeles, so that we can work towards getting back to some sort of profitability or or breaking even. Last comment. Difference between takeout and outdoor dining between November and December, $27,000 to the bottom line. That should say it all. Thank you so much for your time. Appreciate it. Think your next speaker is Stephanie Calo. Hi. Good evening. Council members and Mayor Garcia. My name is Stephanie. I am the owner of Plunge Restaurant in the second district. I also live here as well. As you know, restaurants are in a really bad way. There has been a lot of activity in our industry about. What we. Can and can't do legally right now. Item 24 is something that can be. Done right now. To help my industry and my. Colleagues in a quick and painless way. I'm asking that you pass item 24. It's limiting the amount of third party. Vendors such as DoorDash, Postmates, GrubHub. That can charge our restaurants. Some of our restaurants are currently being. Charged up to 30%. Of the sale. And, you know, we're suffering quite a bit. So while it might not seem like a lot, this extra percentage can be the. Difference between it costing us money to serve that meal, meaning actually. Losing money by. Working or. Making it a. Sustainable sale. Capping the third party fees for at least. One year. After the health order is lifted. Will help our community owned restaurants stay open. During this time, as you know, tons of them are closing. Our businesses and our community really need all. Of the assistance that you can offer us immediately. I'm really. Urging. That you pass this tonight. In the hopes that we can experience a small win and a little relief in our industry. I really thank you all for the work that you're doing. For us all. I know it. Is a really rough. Time with everything going on. And and I appreciate your time and your consideration. Thank. Thank you. That concludes public comment for this item. Thank you. Just a few comments. First, I'm happy to talk. So there's a this was brought up initially at the Economic Development Finance Committee meeting where we discussed the first round of reopening after the initial shutdown. Right. Luis Navarro of Lola's who brought up this this discussion staff has done a good job researching this. They've engaged with the industry and the restaurant sector to make these recommendations. You have a quick question. How do we resolve the issue on of where this when this policy would sunset? Yeah. Hi, Councilmember, this is John Keisler. So in this is similar to the worker protection ordinances the council passed earlier this this past year. And essentially, if the conditions. Still exist as that that warranted this urgency ordinance, then staff will come back to council every 90 days in writing to either confirm or recommend a change. Great. I think that I think that makes sense. I'm happy to make this motion. Who's who is there a second on the motion? To her long. Ago. Okay. I know Mungo's a member of the committee. I'm going to recognize Mongo as the second on this motion. Mango, would you like to speak to the motion council member? Yes. I'm very supportive of this item. And I really appreciate all the restaurant owners that have reached out and the council for supporting this. I know it's taken a bit of time, but it's important and I'm proud to be supporting it now. And that's it. Thank you. Council Members and Day House. Thank you. Thank you, Vice Mayor. Thank you, Councilmember Mongo, for this and that and the committee for actually acknowledging and working really hard with city staff to bring something like this forward. I think this is this really is urgent right now. As you know, our small businesses or restaurants are suffering greatly during this pandemic. And even though this is a tiny, tiny fix and it is and it brings me a little bit of hope for restaurants. And I, you know, just hearing from from the restaurant owners right now. And I was really compelled by their stories. I'm seeing how some of them have gone up to even 30% of their sales. And I think it's it's a really hard time for small restaurants as it is right now. And anything that we could do as a council to help and support our our small businesses, our restaurants, I think is essential. So, again, thank you to your to the committee, to both you vice mayor and Councilwoman Mango for bringing this very important item forward. Fantastic. Is there an additional council comment? Yes. Councilwoman Allen? Yes. Thank you, Vice Mayor and Councilwoman Mongo and all of the restaurants that that spoke. I know this has been really a hard time for everyone and I strongly support this p e because we'll provide that economic relief to food establishments, including our small, independent family owned and minority owned businesses. And as we all know, this pandemic has hit our economy hard and lots of folks are just struggling to get by and they're more likely to order food and even order more items from the restaurants if they're not being being charged. And I also want to say that many of our residents are depending on these delivery services. I received a letter from the Dolby in support of this item, and I also want to thank them for their continuous civic engagement. And overall, oh, this is just a strong business and consumer protection piece, and it has my full support. Thank you. Any additional? No council comments. Fantastic. We already took public comment on this, so I think it's pretty straightforward. Council gave direction. We know the situation with our restaurants. We know this is something we can do this in alignment with our inclusive recovery that the city's charting. So that's it. Let's go ahead with the roll call. Councilwoman Sun has. I. Councilwoman Ellen. Hi. Councilwoman Price. Hi. Councilman Spinner. I Councilwoman Mango. Hi. Councilwoman Sarah I. Councilmember Aranda. Councilmember Muranga. Councilman Austin. Vice Mayor Richardson. Yes. Motion carries. Fantastic. Let's have our panel. I'm sorry, Vice Mayor. That was the first vote on the urgency. We need a roll call vote on the ordinance itself. Thank you. Thank you. Same maker in second year of the motion. Same maker and secondary. Roll call vote for the ordinance. Councilwoman said they have. Right. Councilwoman Allen. Right. Councilwoman Price. I. Councilman sapna. I. Councilwoman Mango. Hi. Councilwoman Sarah. I. Council Member Ranga. Eye. Councilman Austin. Hi. Vice Mayor Richardson. I.