City of Somerville header
File #: 210136    Version: 1
Type: Resolution Status: Expired
File created: 5/12/2020 In control: City Council
On agenda: 5/14/2020 Final action: 2/11/2021
Enactment date: 5/14/2020 Enactment #: 210136
Title: Supporting Somerville restaurants by capping fees charged by third party delivery services during the COVID-19 State of Emergency.
Sponsors: Ben Ewen-Campen, Jefferson Thomas ("J.T.") Scott, Jesse Clingan, Katjana Ballantyne, Kristen Strezo, Lance L. Davis, Mark Niedergang, Mary Jo Rossetti, Matthew McLaughlin, Wilfred N. Mbah, William A. White Jr., and the Mayor

  Agenda Text

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Supporting Somerville restaurants by capping fees charged by third party delivery services during the COVID-19 State of Emergency.

 

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Official Text

WHEREAS:                     The coronavirus pandemic is having a profound impact on local restaurants, including a complete shutdown of in-person dining; and

WHEREAS:                     Those restaurants that have remained open are forced to rely entirely on revenue from pick-up and delivery orders, which requires many such restaurants to be newly reliant on a small number of “third party delivery services”; and

WHEREAS:                     Many of the widely used third party delivery services charge fees as high as 25-30% per order, which represents an enormous burden on already-struggling businesses who have lost all in-person dining revenue; and

WHEREAS:                     This issue has prompted communities across the country to take action in support of local restaurants, including Emergency Orders in San Francisco and Washington D.C., that cap delivery fees at 15%, as well as Resolutions in several of our neighboring communities in support of a statewide cap on delivery fees in Massachusetts; NOW THEREFORE BE IT:

RESOLVED:                     That the Somerville City Council and Mayor call on the State Legislature to pass HD.5054, “An Act relative to restaurant delivery commissions during the COVID-19 state of emergency” that would limit delivery fees to 10% per order for any restaurant with less than five locations; AND BE IT FURTHER

RESOLVED:                     That the City of Somerville explore all legal options, including any Emergency Powers, to enact a local cap of 10% on third party delivery fees; AND BE IT FURTHER

RESOLVED:                     That the Somerville City Council and Mayor commit to working with local restaurants and business development organizations to promote public awareness of this issue, and of the benefits of ordering directly from local restaurants, and of the benefits of ordering take-out whenever possible; AND BE IT FURTHER

RESOLVED:                     That a copy of this Resolution be sent to all members of our State Delegation and to Governor Baker.