HomeMy WebLinkAbout2021-09-23; Microenterprise Home Kitchen Operations (Districts - All); Barberio, GaryCouncil Memorandum
Sept. 23, 2021
To:
From:
Via:
Re:
Honorable Mayor Hall and Members of the City Council
Gary Barberio, Deputy City Manager, Community Services
Jeff Murphy, Community Development Director
Geoff Patnoe, Assistant City Manager(GP
Microenterprise Home Kitchen Oper~ s (Districts -All)
{city of Carlsbad
Memo ID.#2021178
This memorandum provides information on a Sept. 15, 2021, action taken by the County of San
Diego Board of Supervisors directing San Diego County staff to return with adoption of a
Microenterprise Home Kitchen Operations Program, and how that program may impact the city.
Background
Assembly Bill (AB) 626 passed in 2018 -establishing a new type of retail food facility in state law;
Microenterprise Home Kitchen Operations (MEHKO). Under this law, MEHKOs would allow
residents in private homes to prepare and serve food for consumers in their residence subject to
certain limitations and food standards. This is separate from, and in addition to, home
occupation and "cottage food operations," which allows residents to prepare certain foods out of
their home for commercial sale (e.g., cupcakes, jams). AB 6_26 included provisions that allowed a
Local Enforcement Agency (LEA) responsible for inspecting restaurants to develop a regionwide
MEHKO program that local cities could choose to participa_te in. In San Diego County, the LEA is
the San Diego County Department of Environmental Health and Quality (DEHQ). Following
passage of AB 626, a number of concerns were raised over food safety issues and potential land
use impacts (e.g., traffic, noise, lighting, odors, sewer), which resulted in San Diego County not
adopting a countywide MEHKO program.
In 2019, AB 377 was passed that made changes to the original legislation to address food safety
concerns, but the bill did not address noted land use compatibility fears. Additionally, AB 377
removed the provision that allowed jurisdictions to opt-in; if the LEA decided to move forward
with a regional MEHKO program, MEHKOs would be allowed regardless of local zoning and
infrastructure regulations within local cities.
Discussion
In June 2021 and August 2021, DEHQ staff engaged local cities on a "fact finding" mission to
solicit input on a possible San Diego County MEHKO program. At'these meetings, city staff
shared concerns related to enforcement, impacts of commercial uses within residential areas,
utility infrastructure (e.g., inability to require residential sewer facility upgrades to handle
grease), and how complaints would be routed. San Diego County staff indicated that they would
Community Services Branch
Community Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4600 t
Council Memo -Microenterprise Home Kitchen Operations (Districts -All)
Sept. 23, 2021
Page 2
convey the concerns to the San Diego County Board of Supervisors and indicated that DEHQ
would only enforce issues related to the implementation of the California Retail Food Code, and
not general nuisance complaints.
On Sept. 15, 2021, the San Diego County Board of Supervisors meeting agenda included a
discussion item from Supervisor Joel Anderson and Vice-Chair Nora Vargas (Attachment A)
recommending that the Board of Supervisors direct staff to:
Return within 120 days with an ordinance authorizing MEHKO operations; and,
Conduct community/ local municipalities outreach and provide opportunities for public
input during the drafting of the MEHKO program; and,
Implement a public education program based on food safety and running a small volume
retail food operation to limit impacts.
Next Steps
City staff will continue to attend meetings and monitor correspondence from San Diego County
staff and will continue to raise issues and concerns relative to MEHKO program impacts in the
City of Carlsbad.
Attachment: A. County of San Diego -Sept. 15, 2021, Board of Supervisors Letter
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Laura Rocha, Deputy City Manager, Administrative Services
Paz Gomez, Deputy City Manager, Public Works Branch
Vicki Quiram, Utilities Director
Robby Contreras, Assistant City Attorney
Ron Kemp, Assistant City Attorney
Mike Strong, Assistant Director Community Development
Don Neu, City Planner
Eric Lardy, Principal Planner
Jason Haber, Intergovernmental Affairs Director
COUNTY OF SAN DJEGO
•• C ,. 232 / AUG 20 PYt.,·25 COUNTY OF SAN DIEGO . 0
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1600 PACIFIC HIGHWAY, ROOM 335, SAN DIEGO, CALIFORNIA 92101-2470
AGENDA ITEM
DATE: September 15, 2021 02
TO: Board of Supervisors
SUBJECT
AUTHORIZING MICROENTERPRISE HOME KITCHEN OPERATIONS IN SAN
DIEGO COUNTY (DISTRICTS: ALL)
OVERVIEW
Microenterprise Home Kitchen Operations (MEHKOs) were created via Assembly Bill (AB) 626 which was passed unanimously by the State Assembly and Senate and signed into law by Governor
Brown on September 18, 2018. AB 377 (AB 626 clean-up bill) was signed into law by Governor
Newsom on October 7, 2019.
This legislation permits counties to authorize individuals to use their home kitchens to prepare,
sell and serve up to 30 meals per day, or 60 meals per week, and collect a maximum annual revenue
of $50,000. Family members can be employed to help operate MEHKOs, along with a maximum of one paid non-family employee. Menus are restricted to items that can be prepared and sold the
same day. Risky food preparation techniques are prohibited, therefore MEHKOs may notproduce,
serve, or use raw milk, or serve raw oysters or any other food requiring a Hazard Analysis Critical Control Point Plan (a written plan specifying procedures for maintaining food control throughout the entire food preparation, distribution, and storage process). Meals can be served in the home,
picked up by the customer, or delivered by the MEHKO operator.
California Department of Health authorized online intermediaries, such as Foodnome, provide the
mechanism to place an order with a MEHKO. They also provide a way to promote MEHKOs while
collecting required taxes on behalf of the MEKHO operators. MEHKOs require a valid health
permit through the Department of Environmental Health and Quality, an initial inspection and annual inspections thereafter. MEHKO owners are required to obtain a Food Manager certificate
and employees are required to obtain a Food Handler card.
Since the state established MEKHOs, over 140 MEHKOs have been authorized by the following
seven jurisdictions: Alameda County, the City of Berkeley, Imperial County, Lake County,
Riverside County, Santa Barbara County, and Solano County. Additionally, two counties, San
Bernardino and San Mateo have authorized a MEKHO pilot program.
Legistar vl.O 1
SUBJECT: AUTHORIZING MICROENTERPRISE HOME KITCHEN OPERATIONS
IN SAN DIEGO COUNTY (DISTRICTS: ALL)
Since the first MEHKO was authorized in May of 2019, there have been no known cases of MEHKO-related food born illness.
The following are benefits to authorizing MEHKOs: • Creates significant economic opportunities for small-scale, home-cooking operations,
which are primarily operated by women, immigrants, and people of color
• Encourages existing "informal" home food operations to become safer and legal • Enables family members to continue providing in-home care for developmentally disabled family members and older family members while still earning much needed income
• . Creates another path to supplementing family income for those hardest hit the by the
COVID-19 pandemic and lockdowns • Enables aspiring restaurateurs to try out and vet a menu while learning the basics of what
it takes to run a small-scale retail food operation
• Provides additional food service options in remote locations • MEHKOs pay state taxes and acquire business licenses
• San Diego County's Department of Health and Environmental Quality (DEHQ) has already
developed a programmatic framework to implement and administer a MEHKO program.
RECOMMENDATION(S)
SUPERVISOR JOEL ANDERSON AND VICE-CHAIR NORA VARGAS
1. Direct the Chief Administrative Officer to return to the Board within 120 days with an
ordinance authorizing MEHKO operations in San Diego County, consistent with state law.
2. Direct the Chief Administrative Officer to conduct community / local municipalities outreach and provide opportunities for public input during the drafting of the MEHKO
program.
3. Direct the Chief Administrative Officer to implement a public education program for small volume home-based retail food operations and food safety, following the adoption of a MEHKO ordinance. This education should include suggestions and general guidance on
being a good neighbor while running a small volume retail food operation, including considerations of land use, traffic, parking, noise and the importance of appropriate disposal for grease and other food-related waste.
EQUITY IMPACT STATEMENT Experience with existing MEHKOs shows over 90 percent of them are operated by persons of
color and 60 percent are operated by women. Consequently, authorizing MEHKOs in San Diego
County provides an opportunity to implement public policy that will benefit communities of color,
women, their families, and the community. It will also benefit those of limited income who have the entrepreneurial spirit and the desire to enrich their community ~ough their cooking.
FISCAL IMPACT There is no fiscal impact associated with the requested action. All costs will be covered by the MEHKO operator permit fees. There will be no change in net General Fund cost.
Legistar vl.O 2
SUBJECT: AUTHORIZING MICRO ENTERPRISE HOME KITCHEN OPERA TIO NS
IN SAN DIEGO COUNTY (DISTRICTS: ALL)
BUSINESS IMPACT STATEMENT
MERK.Os will create another avenue for San Diego county residents to create significant new
income for their families. An in-depth Foodnome survey found that over 90 percent ofMEHKOs
in other counties are being operated by persons of color. Therefore, formally permitting MEHKOs
to operate in San Diego County will have a positive impact on San Diego's communities of color,
and women entrepreneurs. Further, legally permitted MERK.Os can serve as incubators for
aspiring restaurateurs to try out and vet a menu while learning the basics of what it takes to run a
small-scale retail food operation.
ADVISORY BOARD STATEMENT
NA
BACKGROUND
State·law enacted in 2019 and 2020 allows jurisdictions to authorize Microenterprise Home
Kitchen Operations in California. To date, seven municipalities have authorized the operation
of MEHKOs, providing a legal process for individuals to prepare, sell and serve meals in their own kitchens. During the two-year period that MEHKOs have been permitted to operate in the
state, the results have been positive and include the following findings:
• Over 140 MEHKOs are already operating in California with no known incidences of food
borne illness. To date, there have been no MEHKO-related issues around the disposal of
food waste such as grease.
• According to an in-depth survey conducted by Foodnome, over 90 percent ofMEHKOs to
date are operated by persons of color and 60 percent by women.
• Based on research of informal food marketplaces like Craigslist, Facebook Marketplace,
and WeChat, Matt Jorgensen, founder of COOK Alliance, estimates that at least 50,000 to
100,000 home cooks are currently selling food illegally in California. (2018 estimate)
• State law (AB 626 and AB 377) provides an option for the tens of thousands of persons operating in California's "informal" food economy to become part of California's legal
food economy through microenterprise home kitchen operations (MEKHOs).
• MEHKO regulations require all prepared meals be sold on the same day.
• California is home to the "farm-to-table" movement, which embraces the idea that
restaurants and other food sellers should prioritize locally and sustainably produced foods.
• The COOK Alliance poll found that 30 percent of those participating in the informal food
economy are first generation immigrants.
• Under existing law, individuals can only sell food legally through retail food facilities or
cottage food operations, the latter of which being limited to a restricted list that primarily
consists of nonperishable food items that can be prepared in the home.
• Polling identifies 48 percent of those participating in the informal food economy to be of
African American, Hispanic or mixed race.
• Because San Diego has not opted in to allow MEHKOs, home cooks are unable to use
their homes to legally participate in the locally prepared food economy and earn an income. Consequently, microentrepreneurs cook out of private homes or unlicensed food
facilities, without formal requirements for education on best practices or safety guidelines.
• Many cooks are unable to enter the traditional food economy based on disability, family
Legistar vl.O 3
SUBJECT: AUTHORIZING MICRO ENTERPRISE HOME KITCHEN OPERATIONS
IN SAN DIEGO COUNTY (DISTRICTS: ALL)
responsibilities, or lack of opportunity.
• Under existing law, preparing and selling food from a home kitchen can be treated as a
criminal act and may be punishable as a misdemeanor.
• Providing guidelines, training, and safety resources to home cooks would increase public
health safeguards in existing informal food economies.
The exchange of home-cooked food can improve access to healthy foods for communities,
particularly in food deserts with severely limited options.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
The Board of Supervisors' authorization of Microenterprise Home Kitchen Operations will
contribute to San Diego County's vision of a region that is safe, equitable, healthy, and thriving.
Respectfully submitted,
Supervisor Nora Vargas, District One
ATTACHMENT(S)
NIA
Legistar vl.O
Supervisor Joel Anderson, District Two
4
SUBJECT: AUTHORIZING MICROENTERPRISE HOME KITCHEN OPERATIONS
IN SAN DIEGO COUNTY (DISTRICTS: ALL)
AGENDA ITEM INFORMATION SHEET
REQUIRES FOUR VOTES: □ Yes 181 No
WRITTEN DISCLOSURE PER COUNTY CHARTER SECTION 1000.1 REQUIRED
□ Yes ~ No
PREVIOUS RELEVANT BOARD ACTIONS:
NA
BOARD POLICIES APPLICABLE:
NA
BOARD POLICY STATEMENTS:
NA
MANDATORY COMPLIANCE:
NA
ORACLE AWARD NUMBER(S) AND CONTRACT AND/OR REQUISITION
NUMBER(S):
NA
ORIGINATING DEPARTMENT: Supervisor Joel Anderson, District 2
OTHER CONCURRENCE(S): NA
CONTACT PERSON(S):
Mike Fredenburg
Name 858-.285-0195 .
Phone
mike.fredenburg@sdcounty.ca.gov
E-mail
Legistar vl.O
Mabi Jalit Castro
Name
619.531.5659
Phone
· mabi.castro@sdcounty.ca.gov
E-mail
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