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HomeMy WebLinkAbout4382ORDINANCE NO. 4342 AN ORDINANCE of the City Council of the City of Kent, Washington, restricting restaurant delivery and pickup fees charged by third-party, application-based food delivery platforms and prohibiting reductions in compensation rates paid to delivery drivers, made necessary as a result of COVID- 19 restaurant closures. RECITALS A. On February 29, 2O2O, Washington's governor issued Proclamation 20-05 declaring a state of emergency in the state of Washington due to the COVID-19 pandemic B. On March 6, 2O2O, Mayor Dana Ralph proclaimed an emergency in the city of Kent due to the COVID-l9 pandemic. C. On March L3,2020, the President of the United States declared a national emergency due to the COVID-19 pandemic. D. The conditions warranting the above proclamations continue to exist. As of November 15, 2020, the Washington State Department of Maximum Charges for Food Delivery 1 Health has reported 130,040 confirmed COVID-19 cases and 2,5L9 confirmed COVID deaths in the state of Washington. E. Social distancing measures required to mitigate the spread of the COVID-19 virus have significantly impacted restaurants. On March 16, 2O2O, Washington's governor issued proclamation 2O-I3, which prohibited indoor dine-in services in order to curtail the spread of COVID-19. On March 23,2020, the governor issued proclamation 20-25, the "Stay Home - Stay Healthy" proclamation, which prohibited people from leaving their homes, and which required the cessation of business activities including the closure of restaurants. Over the course of the past several months, restaurants were permitted to partially reopen pursuant to a phased reopening plan. However, businesses have not been permitted to provide dine-in services at levels required to sustain businesses. As a result of the pandemic, many restaurants have been forced to close. F. rates of prohibits Most recently, on November t5,2020, in response to climbing COVID-19, the governor issued proclamation 20-25.8, which indoor dine-in service until at least December L4, 2020. G. During the COVID-19 pandemic, it is critical that restaurants continue to operate. They perform the essential function, along with grocery stores and other food services, of providing the public with access to food as well as employment for workers. Many of these small businesses are minority owned and operated, and the closure of restaurants could have a disproportionate impact on the BIPOC community. H. To date, the COVID-19 pandemic has had a considerable impact on the local economy and, in particular, the restaurant, food service and other related industries, resulting in economic hardship for business Maximum Charges for Food Delivery 2 owners due to loss of business income, as well as layoffs and reduced work hours for a significant percentage workers. I. As a result of the cessation of in-person dining, restaurant delivery and take-out options are critical to the public's accessibility to food and the continued viability of local businesses. J. Many consumers are eager to support local restaurants and use third-party, app-based food delivery platforms to place food orders. These third-party, app-based food delivery platforms charge commission fees to restaurants based on the purchase price. While the service agreements between restaurants and third-party, app-based food delivery platforms vary, these agreements include delivery commission fees of up to 30o/o or more of the purchase price. K. Restaurants, and particularly small, independently-owned, or minority-owned restaurants with few locations, have limited bargaining power to negotiate lower commission fees with third-party, app-based food delivery platforms due to only a few companies in the marketplace that provide such delivery services. These businesses face dire financial circumstances during this COVID-19 pandemic because take-out and delivery are often the only options to keep the business in operation. L. Capping the commission fee to a maximum of 15olo of the purchase price on delivery or pick-up orders while restaurants are unable to provide unrestricted dine-in service will accomplish the fundamental government purpose of ensuring the public's accessibility to food and easing the financial burden on struggling restaurants during this public health emergency while not unduly burdening third-party, app-based food delivery platforms. Maximum Charges for Food Delivery 3 M. This public health emergency has also resulted in a significant number of employment layoffs, reduced work schedules, and record- breaking unemployment claims. During this time of local economic shutdown and uncertainty caused by the COVID-19 pandemic, many vulnerable workers have found work opportunities as delivery drivers for these third-party, app-based food delivery platforms to financially support themselves and their families. N. Third-party, app-based food delivery platforms will further undermine already vulnerable workers if the . companies reduce compensation rates to these delivery drivers as a result of this ordinance, necessitating additional protections to avoid such potential adverse consequences. O. It is in the public interest to take action to better position Kent's restaurant industry to enable restaurants to survive the impacts of the COVID-19 pandemic. Similar action has been taken in many cities around the country. P. The recent complete prohibition of in-person dine-in services at restaurants makes the passage of this ordinance an urgent matter, and the Kent City Council declares this ordinance necessary to address a public emergency in order to protect the economic viability of the restaurant industry in Kent, restaurant employment, and the provision of food resources to the community. a. The Council intends this ordinance remain in effect until such time as the governor allows restaurants to operate at a capacity of seventy- five percent or more, or upon the state of Washington, either through Maximum Charges for Food Delivery 4 legislative action or an emergency proclamation of the governor, establishes a maximum chargeable rate for third-party, app-based food delivery platforms applicable to all cities within King County, Washington. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 7. - The above recitals are hereby adopted as the findings of the City council and the basis for the passage of this ordinance. SECTION 2. - Maximum charge for food delivery - Compensation reduction prohibited - Definition - Penalty. A new ordinance entitled, "Maximum charge for food delivery - Compensation reduction prohibited - Definition - Penalty" is hereby adopted as follows: A. Maximum charge. It shall be unlawful for a third-party, app-based food delivery platform to charge a restaurant a commission fee per online, delivery, or pick-up order for the use of its services that totals more than 15o/o of the purchase price of such online order. B. ComLensation reduction prohibited. It shall be unlawful for a third- party, app-based food delivery platform to reduce the compensation rates paid to the delivery service driver or garnish gratuities as a result of this ordinance or during the duration of this ordinance. C. Definitions. For the purposes of this ordinance, the below terms shall be defined as follows: Maximum Charges for Food Delivery 5 1. "Restaurant" means a business located within the city limits of Kent in which food and/or beverage preparation and service is provided for individual consumption either on- or off-premise. 2. "Third-party, app-based food delivery platform" means any website, mobile application, or other internet service wherein a third- party offers or arranges for the sale of food and beverages prepared by, and the same-day delivery or same-day pick-up of, food and beverages from a restaurant. 3. "Online order" means an order placed through a third-party, app-based food delivery platform for pick-up or delivery from a restaurant within Kent. 4. "Purchase price" means the menu price of an online order. Such term excludes taxes, gratuities, and any other fees that may make up the total cost to the customer of an online order. D. Penalty. The violation of any provision of this ordinance shall constitute a civil infraction punishable by the imposition of a monetary penalty in the amount of five hundred dollars ($500) per occurrence and the loss of the offender's business license. SECTION 3. - Severability. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 4. - Corrections by City Clerk or Code Reviser. Upon approval of the city attorney, the city clerk and the code reviser are Maximum Charges for Food Delivery 6 authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTION 5, - Declaration of public emergency - Statement of urgency. In accordance with RCW 35A.11.090 and 35A.t2.L3O, the council hereby declares the need for this ordinance an urgent matter and a public emergency necessary for the immediate protection and preservation of public peace, health, and safety. SECTION 6, - Effective Date. This ordinance shall take effect and be in force beginning Saturday, November 2L, 2O2O at 12:00 am. SECTION 7. - Automatic repeaL This ordinance shall automatically be deemed repealed upon the effective date of any law, proclamation, order or guidance of the Washington governor or legislature that permits restaurants in Kent to operate with in-person indoor dining at a capacity of seventy-five percent or more, or upon the effective date of a maximum chargeable rate for third-party, app-based food delivery platforms applicable to all cities within King County, Washington that is established by law, proclamation, order or guidance of the Washington governor or legislature. DANA MLPH, MAYO November 17, 2020 Date Approved Maximum Charges for Food Delivery 7 ATTEST: KIMBERLEY MOTO, CITY CLERK APPROVED AS TO FORM: ARTHUR *FITZPATRICK, CITY ATTORN EY November 17, 2020 Date Adopted November 20, 2020 Date Published B Maximum Charges for Food Delivery eladsified Proof Client Address 238398 - City of Kent, City Clerk - LEGAL ADS 220 Fourth Ave S Kent, WA, 98032 Phone E-Mail Fs (2s3) 8s6-s728 kkomoto@kentwa.gov Order# Classifioation StartDate End Date Run Dates Publication(s) 9 l 3880 3030 - Legal Notices 1t/20/2020 1U20/2020 I Kent Reporter Requested'$r,KIM KOMOTO PO# ORDS 43"11-4382 CreatedBy 8280 Creation Date ll/17/2020, 0l:04:24 pm Order Price Tax t Tax 2 Total Net Payment $338.73 $0.00 $0.00 $338.73 $0.00 Salos Rep 9470 - Jennifer Tribbeu Phone E-Mail Fax (360) 802-8212 jtribbett@courierherald.com Proofed by Jennifer Tribbett, ll/17/2020 0l:05:18 pm Page: I Clqccifierl Prnnf\-/lt lrJ\t.t .l.ll/\l r r \-r\-rl- CITYOF KENT NOTICE OF ORDINANCES PASSED BY THE CITY COUNCIL The following are sum- maries of ordinances passed by the Kent City Council on November 17,2020. ORDINANCE NO. ,(l71 -AN ORDINANCE ofthe City Council of the Cityof Kent, Washington, amending the Compre- hensive Plan Land Use Plan Map designationsin compliance with the requirements of the Growth Management Act (cPA-2019-04, cPA-2019-05, cPA-2019-06). This ordinance shall take effect and be in force 30 days from and after its passage, as provided by law. ORDINANCE No. iB74 - AN ORDINANCE ol lhe City Council of the Cig of Kent, Washing- ton, amending sections7.01.070. 7.02.230. 7.03.030, 7.04.220, and 7.05.130 of the Kent City Code to ohange the cal- culation of lifeline utility rates for water, sewer, storm and surface water drainage, and to make other minor technical changes within those same code sections. This ordinance shall take effect and be in force 30 days after the date of its passage as provided for by RCW 35A.1 1.090 and RCW 354.12.130; how- ever, the new authorized lifeline utility rates in Sections 1,2, 4, and 5 will not be utility charges ary 1,2021. ORDINANCE applied to until Janu- NO. 4375 - AN ORDINANCE of Proofed by Jennifer Tribbett, ll/17/2020 0l:05:18 pm Page:2 elaSsified Proof the City Council of the City of Kent, Washing- ton, approving the con- solidating budget adjust- ments made between July 1, 202O and Sep- tember 30, 2020, refleit- ing an overall budget de- crease of $4,338,400. This ordinanoe shall take effect and be in force fve days after its publi- cation as provided for by RCW 35A.11.090 and RCW35A.'12.130. ORDINANCE NO. 4376 - AN ORDINANCE ol the City Council of the City of Kent, Washing- ton, amending the Kent Comprehensive Plan and its Capital Facilities Element to reflect a six-year Capital lmprove- ment Program for capitalimprovement projects (2021 -2026) (CPA-2020- 2'). This ordinance shall take effect and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4377 - AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending the KentComprehensive Plan and its Capital Facilities Element to include the Capital Faoilities Plansof the Kent, Federal Way, and Aubum SchoolDistricts for the202012021 through 202512026 school vears (cPA-2020-1 ). This ordinance will take efiect and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4378 - AN ORDINANCE ol the City Council of the City of Kent, Washing-ton, amending Section 12.13.160 of the Kenl City Code to adjust the school impact fee sched- ules (CPA-2020-1). This ordinance shall take effeot and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4379 - AN ORDINANCE ol the City Council of the City of Kent, Washing- ion, amending the KentComprehensive Plan and its Utilities Element to include the 2019 Wa-ter System Plan (cPA-2020-3). This ordinance shall take effect and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4:I8O - AN ORDINANCE ot the City Council of theCig of Kent, Washing- ton, levying 2020 proper- ty taxes for the first year ofthe 2021 -2O22bien-nial budget for the City of Kent. This ordinance shall take effect and be in force Proofed by Jennifer Tribbett, ll/17/2020 0l:05:18 pm Page:3 Classified Proof lve oays atter me oate of its publication as pro- vided for by RCW 35A.11.090 and RCW 35A.12.130; however, the property tax levied through this ordinance shall not be assessed for collection until January 1,2021. ORDINANCE NO. r$81 - AN ORDINANCE ofthe Cig Council of the City of Kent, Washington, re- lating to budgets and fi- nance and adopting the {tnal 2021 -2O22 biennial bddget. This ordinance shall take effect and be in force five days after the date of its publication as pro- vided for by RCW 35A.11.090 and RCW 354.12.130; however,the budget authorized through this ordinance shall be effective Janu- ary 1,2021. ORDINANCE /til82 - AN ORDINANCE of the City Council of the City ol Kent, Washington, made necessary as a result o{ COVID-19 restaurant closures, restricting res- taurant delivery and pickup fees charged by third-party, application- based food delivery plat- forms and prohibiling re- ductions in compensa-tion rates paid to delivery drivers. This ordinance shall take effect and be in force be- ginning Friday, Novern' bet 20, 2020, at 11:59 pm. A copy of text of any be mailed of the City the complete ordinance will upon request Clerk. Kimbedey A. Komoto, City Clerk Kkomoto@KentWA.gov 253-856-5725 #9'13880 11t20r24 Proofed by Jennifer Tribbett, llll712020 0l:05:18 pm Page: 4