Resolution 2020-31470 RESOLUTION NO. 2020-31470
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE NEIGHBORHOOD AND QUALIFY OF
LIFE COMMITTEE AT ITS OCTOBER 19, 2020 MEETING, TO
AUTHORIZE THE CITY ADMINISTRATION TO PROCEED WITH THE
CREATION OF THE MIAMI BEACH RESTAURANT REIMBURSEMENT
GRANT PROGRAM.
WHEREAS, the COVID-19 pandemic has and continues to threaten the Miami
Beach restaurant industry as it has forced many restaurants to either close or switch
their operations to focus on pickup or delivery
WHEREAS, at the September 23, 2020 Neighborhood and Quality of Life
Meeting, committee members discussed the hardships faced by restaurants due to the
COVID-19 pandemic and the associated emergency orders and guidelines; and
WHEREAS, the seating capacity limitations and imposed health and safety
guidelines created a greater dependency on restaurant delivery services from third-party
delivery services such as Uber Eats, Postmates, DoorDash and GrubHub; and
WHEREAS, third-party delivery services helped compensate for lost revenue
when dine-in spaces were ordered closed due to social distancing guidelines; and
WHEREAS, however, commission fees charged to restaurants for delivery
services became a burden for the industry, particularly for family establishments and
small, local businesses; and
WHEREAS, on average, third-party delivery services charge restaurants between
15 percent and 30 percent in fees as the middleman, essentially erasing any or most
profit; and
WHEREAS, even with the recent opening of dining rooms for on-premises
consumption, the burden of commission fees charged to restaurants remains, as
consumers still increasingly rely on delivery services for a greater share of their meals;
and
WHEREAS, at its September 23, 2020 Neighborhood and Quality of Life
Committee ("NQLC") meeting, the members discussed hardships that the City of Miami
Beach restaurants were facing with third party delivery fees, and directed the City
Administration to return to the next Committee meeting with a proposed reimbursement
program for City of Miami Beach restaurants to offset expenses related to delivery service
fees; and
WHEREAS, at the September 29, 2020 Budget Meeting, in recognition of the need
to immediately address the burden that third- party vendor fees have placed on
restaurants, the Mayor and City Commission allocated $60,000, authorizing the City
Administration to utilize funds to establish a restaurant reimbursement program to City of
Miami Beach restaurants to offset expenses related to delivery service fees; and
WHEREAS, at the October 19, 2020 the NQLC meeting, the City Administration
presented before the Committee the creation of the Miami Beach Restaurant
Reimbursement Grant Program, recommending the establishment of a restaurant
reimbursement program on a first-come, first-qualified, first-serve basis to provide
assistance to approximately ten percent of restaurants within the City with a grant of up
to $1,000 per restaurant; and
WHEREAS, the guidelines attached hereto as Exhibit A, and incorporated herein
by reference, set forth procedures for the implementation of the Miami Beach Restaurant
Reimbursement Grant Program; and
WHEREAS, the NQLC recommended that the City Commission authorize the City
Administration to proceed with the creation of the Miami Beach Restaurant
Reimbursement Grant Program.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the Neighborhood and Qualify of Life
Committee at its October 19, 2020 meeting, to authorize the City Administration to
proceed with the creation of the Miami Beach Restaurant Reimbursement Grant Program.
PASSED and ADOPTED THIS ag day of och114` 2020.
ATTEST:
Dan Gelber, Mayor
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Rafael E. Granad , y Clerk
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APPROVED AS TO
FORM & LANGUAGE
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Exhibit A
MIAMI BEACH RESTAURANT REIMBURSEMENT GRANT PROGRAM GUIDELINES
Purpose and intent
• These guidelines are intended to facilitate the efficient, effective, and consistent
implementation of the Miami Beach Restaurant Reimbursement Grant
Program.
II. Eligible businesses
• Restaurant located within the City of Miami Beach
III. Ineligible businesses
• Nightclubs, bars (without restaurant), mobile food trucks or carts, restaurants
within hotels and home-based businesses
• Restaurants utilizing a Pop-up permit
• Restaurants with outstanding code violation(s)
• Restaurants that are part of a chain/franchise
IV. Requirements
• Applicable City of Miami Beach/Miami-Dade County/State of Florida licenses
must be up to date
• Miami Beach Business Tax Receipt must be in paid status (with consideration
of the new BTR payment options)
• Applicant must be a business that was or became operational (as evidenced
by a City of Miami Beach Certificate of Use or Business Tax Receipt) prior to
October 31, 2020.
• Restaurant owner/operator/applicant shall have no outstanding code liens,
fines or violations, pending litigation with the City of Miami Beach or any unpaid
ad valorem property taxes (if owner of the property).
• Regardless of reimbursement amount being requested (up to $1,000), only one
grant application per business is allowed.
• Grant application must be signed by the president/general manager/majority
owner of the business.
• Applicants may not submit multiple applications using different partners, family
members or other persons.
• An applicant (including the applicant's spouse, parents or children) may only
submit one application for a single restaurant for which the applicant (including
his or her spouse, parent or children) holds a "controlling interest." The term
"controlling interest" shall mean either (i) the power to direct the management
and decisions (both major decisions and day-to-day operational decisions) of
any restaurant, whether the restaurant is held through a corporation,
partnership, trust or any other type of entity, or (ii) a majority ownership of the
outstanding capital stock of any such entity.
• Accordingly, if an applicant (including his or her spouse, parent or children)
holds a controlling interest in more than one eligible restaurant, only one of
those restaurants may apply for and receive funding through the Program, even
if the restaurant has more than one owner. To be considered, applications must
be completed in full, signed and submitted via the designated e-mail/online
platform. Applications may not be hand-delivered by the applicant.
• Submit appropriate invoice(s) and proof of payment with back-up
documentation acceptable to the City of Miami Beach.
• To receive the reimbursement payment, the business must be "open and in
business" as determined by the City of Miami Beach, in its sole discretion.
V. Eligible expenses for reimbursement
• Expenses for delivery service fees from apps including UberEats, GrubHub,
DoorDash and Postmates among others.
• Only those expenses incurred between the March 12, 2020 emergency
declaration by the City Manager and October 31, 2020
VI. Proof of payment for reimbursement-to be reimbursed, businesses must
provide the following:
• A copy of the paid invoice and a receipt which should clearly identify the
business, the business address and a description of the services that were
obtained by the business with a statement or stamp that says PAID.
• A copy of the method of payment:
• If paid by check, a copy of both sides of the cancelled check.
• If paid by credit card, a copy of the credit card receipt to confirm payment for
the invoice was made to the vendor/service provider.
• If paid by cash, a copy of the cash receipt which must note CASH paid in full
with the signature of the vendor/service provider.
VII. Grant application window
• Application available online on November 1, 2020 (proposed)
• Applications evaluated and processed on a first-come, first-qualified, first-
served basis
• Application open until funds are exhausted
Resolutions -C7 B
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 28, 2020
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE NEIGHBORHOOD AND QUALITY OF LIFE COMMITTEE TO
PROCEED WITH THE CREATION OF THE MIAMI BEACH RESTAURANT
REIMBURSEMENT GRANT PROGRAM.
RECOMMENDATION
The Administration recommends accepting the recommendation of the Neighborhood and
Quality of Life Committee at the October 19, 2020 meeting, approving the creation of the Miami
Beach Restaurant Reimbursement Grant Program.
BACKGROUND/HISTORY
At the September 23, 2020 Neighborhood and Quality of Life Committee meeting,
Commissioner Gongora discussed the hardships faced by restaurants due to the COVID-19
pandemic and the associated emergency orders and guidelines. Although restaurants were
authorized to remain open throughout the shutdown, the primary restaurant model of in-person
dining was restricted and remains limited even during the reopening phases. The seating
capacity limitations and imposed health and safety guidelines created a greater dependency on
restaurant delivery services from third-party vendors such as Uber Eats, Postmates, DoorDash
and GrubHub.
Commissioner Gongora discussed the potential to create a reimbursement program for Miami
Beach restaurants to address the financial burden of delivery service fees. At the September
29, 2020 Budget Meeting, the City Commission allocated $60,000 for a reimbursement
program to Miami Beach restaurants for delivery services.
ANALYSIS
The COVID-19 pandemic has and continues to threaten the Miami Beach restaurant industry
as it has forced many restaurants to either close or switch their operations to focus on pickup
or delivery. Many restaurants utilize third-party food delivery companies such as Uber Eats,
Postmates, DoorDash and GrubHub. Third-party food delivery services are online platforms
enabling consumers to place on-demand orders on a website/mobile application (app) for
direct delivery of food from local restaurants. Both consumer and restaurant are charged for
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the on-demand service acting as an intermediary between them. The delivery service charges
the consumer a small delivery fee (flat amount or a percentage of the order) and charges
restaurants a commission rate for collecting orders and delivering food to the customer. While
commission rates are negotiable, eateries generally pay around 30 percent on orders made
through a third-party app and delivered by the app's drivers. When restaurants use their own
delivery staff, they typically pay 15 percent commission to the third-party delivery company for
booking orders.
Before COVID-19
Online platforms helped transition food delivery from a small segment of the restaurant
industry, dominated by pizza, to a growing new source of sales for all establishments. In the
pre-COVI D-19 era, delivery services were extremely beneficial for restaurants, particularly
smaller restaurants that did not have online functionality to take orders and/or delivery staff to
deliver food. Therefore, the costs associated with delivery fees represented a marketing
expense. Overall, revenue generated from delivery sales accounted for a much smaller share
of revenue as compared to in-person dining. Thus, restaurants accepted the expense as a
nominal cost of doing business.
COVID-19 Impact
When onsite dining was initially restricted in March 2020, minimal-contact interactions and
curbside pickup surged. Delivery services grew more popular by allowing quarantined
customers to order from home and support their local small businesses. Delivery became a
lifeline to reach customers, maintain revenue, and continue operations during the pandemic. In
this sense, third-party delivery services helped compensate for lost revenue when dine-in
spaces were ordered closed or scaled down due to social distancing guidelines. The burden
to restaurants developed as consumers used delivery services for a greater share of their
meals and delivery orders began to replace restaurants' core business instead of
complementing it. While ostensibly giving restaurants business, the delivery services and
related commission fees were effectively taking it away. Commission fees charged to
restaurants have become problematic for the industry, particularly for mom and pop
establishments.
Relief to Restaurants
The Florida Restaurant & Lodging Association worked with several delivery companies to
develop incentives to help restaurants, including getting delivery companies to lower their
commissions, and reduce or eliminate delivery fees. For example, during March, Uber Eats
waived delivery fees charged to customers ordering from some independent restaurants
(100,000 nationwide) and also waived commission fees charged to restaurants for pickup
orders. In addition, the app prioritizes the promotion of local independent restaurants when
usersopen the.app. UberEats also developed a functionality allowing restaurants to get daily
payouts instead of weekly cash payments. Delivery companies assisted many restaurants with
getting set up to accept online orders from their own website. Restaurants were able to utilize
existing staff as delivery people, which enables operators to retain and repurpose staff.
The Greater Miami Convention and Visitors Bureau (GMCVB) created its Miami Eats program,
an online repository of current info about 1500 Greater Miami restaurants, including almost 200
in Miami Beach, each of which had been contacted to confirm information such as business
hours and delivery options.
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In Miami-Dade County, the North Miami Community Redevelopment Agency (NMCRA)
initiated the NoMi Delivers Program to provide relief to customers as well as restaurants and
breweries. For an initial one-month term, NMCRA has partnered with Uber Eats to offer$5 off
delivery for any orders over $15. Additionally, the NMCRA will reimburse participating
restaurants up to 30 percent of delivery service fees (through any delivery app) for up to
$5,000 a month (total) for all delivery application fees and additional services. Over 50
restaurants are participating in the NoMi Delivers Program. The Program excludes chain
restaurants, nightclubs, bars, mobile food trucks, restaurants within hotels, and home-based
businesses.
Miami Beach Restaurant Reimbursement Grant
The City Commission has allocated $60,000 to create a reimbursement program for Miami
Beach restaurants to offset expenses related to delivery service fees. As of October 7, 2020,
the Finance Department has identified 628 restaurant Business Tax Receipts (BTRs) as
follows:
Restaurant/Bar 581
Restaurant(Takeout)37
Restaurant(No Bar) 10
Due to the volume of restaurants, a first-come, first-qualified, first-served grant program is
proposed to distribute funds to eligible restaurants. To provide assistance to approximately ten
percent of restaurants within the city, the Administration proposes a grant of up to $1,000 per
restaurant utilizing the following guidelines:
Eligible businesses:
• Restaurant located within the City of Miami Beach
Ineligible businesses:
• Nightclubs, bars (without restaurant), mobile food trucks or carts, restaurants within hotels
and home-based businesses
• Restaurants utilizing a Pop-up permit
• Restaurants with outstanding code violation(s)
• Restaurants that are part of a chain/franchise
Requirements:
• Applicable City of Miami Beach/Miami-Dade County/State of Florida licenses must be
up to date
• Miami Beach Business Tax Receipt must be in paid status (with consideration of the new
BTR payment options)
• Applicant must be a business that was or became operational (as evidenced by a City of
Miami Beach Certificate of Use or Business Tax Receipt) prior to October 31, 2020.
• Restaurant owner/operator/applicant shall have no outstanding code liens, fines or
violations, pending litigation with the City of Miami Beach or any unpaid ad valorem
property taxes (if owner of the property).
• Regardless of reimbursement amount being requested (up to $1,000), only one grant
application per business is allowed.
• Grant application must be signed by the president/general manager/majority owner of the
Page 9 of 370
business.
• Applicants may not submit multiple applications using different partners, family members
or other persons.
• An applicant (including the applicant's spouse, parents or children) may only submit one
application for a single restaurant for which the applicant (including his or her spouse,
parent or children) holds a "controlling interest." The term "controlling interest" shall mean
either (i) the power to direct the management and decisions (both major decisions and
day-to-day operational decisions)of any restaurant, whether the restaurant is held through
a corporation, partnership, trust or any other type of entity, or (ii) a majority ownership of
the outstanding capital stock of any such entity.
• Accordingly, if an applicant(including his or her spouse, parent or children) holds a
controlling interest in more than one eligible restaurant, only one of those restaurants may
apply for and receive funding through the Program, even if the restaurant has more than
one owner.
• To be considered, applications must be completed in full, signed and submitted via the
designated e-mail/online platform.Applications may not be hand-delivered by the
applicant.
• Submit appropriate invoice(s) and proof of payment with back-up documentation
acceptable to the City of Miami Beach.
• To receive the reimbursement payment, the business must be "open and in business" as
determined by the City of Miami Beach, in its sole discretion.
Eligible expenses for reimbursement:
• Expenses for delivery service fees from apps including UberEats, GrubHub, DoorDash
and Postmates among others.
• Only those expenses incurred between the March 12, 2020 emergency declaration by
the City Manager and October 31, 2020
Proof of payment for reimbursement -to be reimbursed, businesses must provide the
following:
• A copy of the paid invoice and a receipt which should clearly identify the business, the
business address and a description of the services that were obtained by the business
with a statement or stamp that says PAID.
• A copy of the method of payment:
o If paid by check, a copy of both sides of the cancelled check.
o If paid by credit card, a copy of the credit card receipt to confirm payment for the
invoice was made to the vendor/service provider.
o If paid by cash, a copy of the cash receipt which must note CASH paid in full with
the signature of the vendor/service provider.
Grant application window:
• Application available online on November 1, 2020 (proposed)
• Applications evaluated and processed on a first-come, first-qualified, first-served basis
• Application open until funds are exhausted
Potential partnership with Food Delivery Service companies
The Administration is exploring opportunities to partner with food delivery apps/companies to
promote Miami Beach restaurants and increase patronage.
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CONCLUSION
As the restaurant industry represents a substantial segment of the Miami Beach business
community, it is imperative that restaurants are afforded every opportunity to bounce back.At the
October 19, 2020 Neighborhood and Quality of Life Committee (NQLC) meeting, the
Committee unanimously supported the creation of the Miami Beach Restaurant Reimbursement
Grant Program. In addition to development of the Miami Beach Restaurant Reimbursement
Grant Program, staff plans to work with the Florida Restaurant & Lodging Association,
UberEats and other apps to establish promotional opportunities to further assist restaurants.
Applicable Area
Citywide
Is this a "Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Legislative Tracking
Economic Development
Sponsor
Commissioner Michael Gongora
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