HomeMy WebLinkAbout2020 Ordinance No. 057Page 1 of 5
BY AUTHORITY
ORDINANCE NO. 57 COUNCIL BILL NO. 60
SERIES OF 2020 INTRODUCED BY COUNCIL
MEMBER SIERRA
AN ORDINANCE ADDING TITLE 5, CHAPTER 31, SECTIONS 1-6 TO THE
ENGLEWOOD MUNICIPAL CODE, REGARDING REGULATIONS FOR THIRD
PARTY FOOD DELIVERY SERVICES, PURSUANT TO THE PROVISIONS OF
ENGLEWOOD HOME RULE CHARTER, SECTION 41, ALL WITHIN THE CITY
OF ENGLEWOOD, COLORADO.
WHEREAS, the City of Englewood, Colorado, (“City”), is a home rule municipality,
organized and existing under and by virtue of Article XX, Section 6 of the Colorado Constitution,
and as such the City has all legislative powers and functions of home rule municipal government
as reserved to it by the Colorado Constitution and the laws of the State of Colorado;
WHEREAS, Englewood Municipal Code Title 5 imposes licensing and special condition
requirements on certain categories of businesses within the City of Englewood;
WHEREAS, the ongoing public health crisis and the emergency orders issued by the State
of Colorado and the Tri-County Health Department to control and slow the spread of the SARS-
CoV-2 virus and to mitigate the effects of the disease resulting from the virus (“COVID-19”) have
restricted the movement and congregation of persons in the City and have restricted food
establishments from operating freely and at full on-premises capacity within the City;
WHEREAS, the restrictions from freely operating have had severe financial impacts on all
food service establishments within the City, and caused many such establishments to consider
permanent closure;
WHEREAS, the COVID-19 public health emergency has increased the need for take-out
and delivery meal services and increased the dependence of the City’s food-service
establishments on the business generated through take-out and delivery orders;
WHEREAS, some restaurants may receive take-out orders directly, other orders are taken
by third- party food delivery platforms and other services that operate through websites and/or
mobile phone applications used by consumers;
WHEREAS, third-party food delivery platforms and services, without the local restaurant’s
knowledge or consent, will purport to sell meals from the local restaurant to consumers, and
sometimes charge exorbitant fees to the already struggling local restaurants during the time of
and following the declared emergency that restricts on-premises dining;
WHEREAS, the Englewood City Council finds that when excessive fees are charged by
third-party food delivery platforms substantial harm is caused to the City’s food service
establishments and the City’s consumers, threaten the viability of the City’s food service
establishments during and after the public health emergency, and cause substantial harm to the
general public welfare; and
WHEREAS, based upon the above findings the City Council has determined that action on
this matter should be taken by emergency ordinance, for the immediate preservation of public
property, health, peace or safety, in accordance with the provisions of Englewood Home Rule
Charter, Section 41, specifically an action to temporarily limit third party food delivery service
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commission fees to protect the health, safety, property and welfare of the City during the term of
the pandemic health emergency.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
In accordance with the provisions of Englewood Municipal Code and Section 41 of the
Home Rule Charter of the City of Englewood regarding passage of emergency ordinances, and
incorporating the recitals as set forth above, the following amendments to Title 5, Business and
License Regulations, are hereby approved:
Section 1: Title 5, Chapter 31, Sections 1- 6. Title 5 shall be amended by adding Chapter
31, sections 1- 6 as follows:
Chapter 31 – Third Party Food Delivery
Services 5-31-1: - Definitions.
For purposes of this chapter the following definitions apply:
"Online order" means an order placed by a customer through a platform provided by the third-
party food delivery platform for delivery or pickup.
"Purchase price" means the menu price of an online order, excluding taxes, gratuities, or any
other fees that may make up the total cost to the customer of an online order.
"Retail Food Establishment" or “Food Establishment” means any retail operation that
serves, stores, prepares, or packages food for sale for human consumption to consumers
directly, or indirectly through a delivery service.
“Telephone order” means an order placed by a customer to a restaurant through a telephone
call forwarded by a call system provided by a third-party food delivery platform for delivery or
pickup within the city.
"Third-party food delivery platform" means any person, website, mobile application, or other
internet service that offers or arranges for the sale of food and beverages prepared by, and
the same day delivery or same-day pickup of food and beverages from, retail food
establishments.
5-31-2: - License Required.
It shall be unlawful for any person or entity to act as a third-party food delivery platform in the
City of Englewood without having first obtained a license in accordance with E.M.C. 5-1-2 et seq.
License fees shall be determined by the City Council in accordance with E.M.C. 5 -1-6.
5-31-3: - Application for License.
Third Party Food Delivery Platform licenses shall be issued in accordance with Chapter 1 of this
Title.
5-31-4: - Special Conditions and Restrictions of the License.
In addition to the requirements of Chapter 1 of this Title, the following special conditions and
restrictions apply:
A. A third-party food delivery platform shall not perform any service for or disclose any
information about a retail food establishment without their consent.
B. A third-party delivery food platform shall not charge any additional fee to a retail food
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establishment that it has not voluntarily agreed to pay.
C. At the time a final price is disclosed to a customer for the intended purchase and delivery
of food from a retail food establishment through a third-party food delivery platform and
before that transaction is completed by the customer, the third-party food delivery
platform shall disclose to the customer, in plain language and in a conspicuous manner,
any commission, fee, or any other monetary payment charged to the customer by the
third-party food delivery platform.
D. After a transaction occurs for the purchase and delivery of food from a retail food
establishment through a third-party food delivery platform, the third-party food delivery
platform will provide an electronic or printed receipt to the customer. The receipt shall
disclose, in plain and simple language and in a conspicuous manner:
1. The menu price of the food;
2. Any sales or other tax applied to the transaction;
3. Any delivery charge or service fee, imposed on and collected from the customer
by the third-party food delivery platform and by the covered establishment, in
addition to the menu price of the food;
4. Any tip that will be paid to the person delivering the food, and not to the third-party
food delivery platform, that was added into the transaction when it occurred, and
5. Any commission associated with the transaction.
E. No third-party food delivery platform may charge any fee from a retail food establishment
for a telephone or internet order if there is no actual transaction during or as a result of
the telephone call or internet order.
5-31-5: - Special Conditions and Restrictions of the License that shall expire March 31, 2021.
A. No person shall cause a third-party food delivery platform to charge a retail food
establishment a commission fee for the use of the platform's services for delivery or pick-
up that exceeds 15% of the purchase price per online order.
B. The provisions of this section shall not limit the ability of any retail food establishment to
choose to pay a higher commission or supplemental fee to access additional advertising
or other products and services offered by any third-party food delivery platform.
C. No person shall cause a third-party food delivery platform to reduce the compensation
rate paid to a delivery service driver or garnish gratuities in order to comply with this
order.
D. The provisions of this section, E.M.C. 5-30-5, shall expire at 11:59 p.m. on March 31,
2021, unless further extended.
5-31-6: - Complaint; Violation; Enforcement.
A. Any food establishment may submit a complaint of a violation of this Chapter to the
Licensing Officer of the City, and provide evidence in support of such complaint.
B. Any law enforcement officer, or other enforcement officer of the City, is hereby authorized
to investigate any complaint of a violation of this Chapter.
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C. Third-party food delivery platforms shall maintain books and records available for the
Restaurant Delivery Fee Program Coordinator to investigate any complaints. Such books
and records shall be made available to the Restaurant Delivery Fee Program Coordinator
upon demand. Failure to provide the records as required in this section shall be prima
facie rebuttable evidence of a violation.
D. Any violation of this chapter shall be addressed in accordance with E.M.C. 5-1-9,
authorizing both the revocation of a license to operate within the City and/or the issuance
of a citation.
E. Each offense shall be deemed a separate violation of this Chapter.
F. Penalties for violation(s) shall be in accordance with E.M.C. 1-4-1, et seq.
Section 2. Notice of general provisions and findings applicable to interpretation and
application of this Ordinance:
Applicability of Title 1, Chapter 2, Savings Clause. The provisions of E.M.C. Title 1, Chapter
2, Savings Clause apply to the interpretation and application of this Ordinance, unless otherwise
set forth above, including, but not limited to, the provisions regarding severability, inconsistent
ordinances or code provisions, effect of repeal or modification, and legislation not affected by
repeal.
Enforcement. E.M.C. 1-4-1 mandates that except as otherwise provided within specific Titles,
Chapters or Sections of the E.M.C., the violation of any provision of the E.M.C. shall be punished
by a fine not exceeding two thousand six hundred and fifty dollars ($2650.00) or imprisonment
for a term not exceeding three hundred sixty (360) days or both.
Safety Clauses. The Englewood City Council hereby finds, determines, and declares that this
Ordinance is promulgated under the general police power of the City of Englewood, that it is
promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and welfare.
The Englewood City Council further determines that the Ordinance bears a rational relation to the
proper legislative object sought to be obtained.
Introduced, read in full, and passed as a Bill for an Ordinance on first reading on the 7th day
of December, 2020.
Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 10th
day of December, 2020.
Title republished on the 8th of December, 2020 to provide notice that the action was taken
as a regular Ordinance.
Published as a Bill for an Ordinance on the City’s official website beginning on the 9th day
of December, 2020 for thirty (30) days.
Read by Title and passed on final reading on the 14th day of December, 2020.
Published by Title in the City’s official newspaper as Ordinance No. 57, Series of 2020, on
the 17th day of December, 2020
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Published by title on the City’s official website beginning on the 16th day of December,
2020 for thirty (30) days.
This Ordinance shall take effect thirty (30) days after publication following final passage.
Linda Olson, Mayor
ATTEST:
Stephanie Carlile, City Clerk
I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing is a true copy of the Ordinance passed on final reading and published by
Title as Ordinance No. 57, Series of 2020.
Stephanie Carlile
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