HomeMy WebLinkAboutAgenda Report - March 4, 2020 H-033 AGENDA ITEM on
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Provide Direction to City Manager to Request that the San Joaquin County Board
of Supervisors Do Not Opt in to AB 626, and Thus Allow Micro Enterprise Home
Kitchen Operations
MEETING DATE: March 4, 2020
PREPARED BY: City Manager
RECOMMENDED ACTION. Provide direction to City Manager to request that the San Joaquin
County Board of Supervisors do not opt in to AB 626, and thus allow
Micro Enterprise Home Kitchen Operations.
BACKGROUND INFORMATION: Assembly Bill 626 creates an "opt -in" provision for counties to allow
Micro Enterprise Home Kitchen Operations (MICO's). If a County opts -in, they do so on behalf of the
cities within their jurisdiction. San Joaquin County graciously gave their cities a heads up that they are
considering the legislation and requested city input before binding cities with any decision they make.
AB 626's terms are well summarized in the attached letter from Kasey Foley, Interim Director of the
Environmental Health Department. However one provision is of significant concern. AB 626 would allow
MICO's to operate traffic generating enterprises in residential neighborhoods, and explicitly preempt any
local zoning provisions to the contrary. If approved, MICO's could serve up to 30 sit down meals per
night, and 60 sit down meals per week, essentially operating as a small residential neighborhood
restaurant. Unfortunately neighborhoods were not designed with the infrastructure necessary to run a
commercial kitchen: lacking parking, grease traps, solid waste and other infrastructure necessary to
accommodate intense use.
Lodi Municipal Code 17.36.060 explicitly prohibits traffic and sewage generating home occupations for
this reason:
• Client/customer visits. The home occupation shall involve no on-site clients except
for: a. Home occupations in live/work units; b. Tutoring or instruction of children by
appointment; and c. Applicants with a demonstrated mobility handicap.
Staff recommends that Council authorize staff to request that the County not opt in to AB 626.
FISCAL IMPACT:
FUNDING AVAILABLE: Not applicable
APPROVED:
Manager
".cG SAN JOAQUIN
2.
COUNTY
Greatness grows here.
February 10, 2020
Steve Schwabauer, City Manager
City of Lodi
Sent Via Email
Dear City Manager Schwabauer,
Environmental Health Department
Kasey Foley, REHS, Interim Director
PROGRAM COORDINATORS
Robert McClellon, REHS
Jeff Carruesco, REHS, RDI
Willy Ng, REHS
Muniappa Naidu, REHS
Michael Kith, REHS
Melissa Nissim, REHS
San Joaquin County Environmental Health Department is reaching out to make you aware of the
new law authorizing Microenterprise Home Kitchen Operations (AB 626) as of January 1, 2019, and
the subsequent cleanup language (AB 377) in October 2019. A synopsis of the new law is below
and any comments, questions, or concerns regarding this law would be appreciated from you.
Specifically, the City of Lodi's preference to have San Joaquin County "opt -in" or "opt -out" would be
most welcome.
MICROENTERPRISE HOME KITCHEN OPERATIONS
SUMMARY:
Beginning January 1, 2019, and pursuant to AB 626 and AB 377, the California Health and Safety
Code (CalCode) was amended to include provisions for the authorization, regulation and operation
of a Microenterprise Home Kitchen Operation (MEHKO), which is a new type of retail food facility
where a resident operates a restaurant from their home kitchen for onsite or off-site food sales
directly to the consumer. MEHKOs are limited in the number of meals served and annual income
received from sales. AB 626 places limitations on regulation of MEHKOs by environmental health,
planning and building agencies. For example, this amendment restricts routine sanitation
inspections to only once per year, regardless if the food being prepared and served is perishable
but allows inspections in response to a complaint or if there is a specific public health concern. It
also removes occupancy requirements for public access to the property for direct sales and for
onsite food consumption. CalCode requires the governing body of a jurisdiction to adopt a resolution
or an ordinance to "opt -in" for these provisions to become effective and for MEHKOs to be allowed
to operate in a County.
During the state's legislative process prior to enactment of AB 626, the California State Association
of Counties (CSAC), Urban Counties of California (UCC), Rural County Representatives of
California (RCRC), County Health Executives Association of California (CHEAC), and Health
Officers Association of California (HOAC) took an oppose position to AB 626 due to various public
health and other concerns. These concerns included those related to foodborne illness, sanitation,
parking, water/waste water, fire hazards, ADA accessibility, housing conditions, the potential
difficulty and cost to regulate private homes. AB 626 was enacted by the Governor on September
18, 2018 with the new law becoming effective on January 1, 2019. Changes were enacted when
AB 377 was signed into law by the Governor clarifying the sole authority to permit MEHKOs is the
1868 E. Hazelton Avenue I Stockton, California 95205 1 T 209 468-3420 1 F 209 464-0138 1 www.sjgov.org/ehd
SAN J O A Q U I N Environmental Health Department
COU NTY-
enforcement agency responsible for all retail food permitting and inspection, which is the
Environmental Health Department in San Joaquin County. Another change was the clarification that
once the County "opts -in" all cities within the county are preempted from "opting -out" resulting in an
automat "opt -in" for those cities.
DISCUSSION
CalCode pursuant to AB 626 and AB 377 contains specific operational and regulatory requirements
for MEHKOs that need to be addressed should the County choose to "opt -in" to the new program.
The County is limited to accept the requirements in CalCode and cannot place additional restrictions
on their operation or regulation. Below are some of the main operational and regulatory parameters:
Operational Requirements for MEHKOs:
• A city or county designated as the enforcement agency for retail food safety by CalCode has full
discretion to authorize operation of MEHKOs in their jurisdiction through a resolution or
ordinance but cannot adopt requirements more restrictive than CalCode. Until a county or a city
authorizes these types of operations, MEHKOs cannot operate.
o For San Joaquin County this means that only the County Board may authorize the operation
and permitting of MEHKOs and would do so on a countywide basis.
• A resident can prepare and sell up to 30 meals per day but no more than 60 meals per week
from their home kitchen up to a maximum of $50,000 gross annual sales.
• MEHKOs can be operated from single or multi -family homes, owned or rented.
• Home prepared meals may contain perishable food items, except for oysters and raw milk, must
be made and sold the same day, and must be sold directly to the consumer either sit down
onsite or take out, which includes internet sales.
• May have one employee in addition to family members.
• Appropriate food training certification and food handling cards are required for the operator and
those involved in food preparation.
Reaulation reauirements for MEHKOs:
• MEHKOs may have no more than one routine inspection per year, with additional inspections
being allowed only to investigate a complaint, by appointment with the food operator, or
immediately if health hazard is suspected (for example: knowledge that operator has a
communicable, food -borne, illness).
• To accommodate the differences between a home kitchen and a commercial kitchen, MEHKOs
are exempted from many commercial kitchen requirements, including those related to sinks for
handwashing, dishwashing, and requirements for commercial food grade construction for the
facility and equipment, grease traps to prevent fats, oils, and greases from harming sewer
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SAN JOAQUIN
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disposal pipelines and fouling wastewater treatment plants. The presence or handling of animals
in the kitchen is only restricted during the food preparation time.
• The law also exempts MEHKOs from any additional planning and permitting provisions of other
laws as specified such as zoning requirements, noise restrictions, traffic requirements and
occupancy, etc. There are differing opinions on the status of ADA requirements.
Status of MEHKOs in California:
While AB 626 originally provided authority to city and county jurisdictions to allow permitting of
MEHKOs within their respective jurisdictions, it created confusion because the authority to enforce
the provisions of CalCode and issue food facility permits only lies within the Environmental Health
agencies. With the exception of a few cities that have their own Environmental Health Departments,
the county Environmental Health departments act as the local enforcement agency with jurisdiction
for retail food facilities. AB 377, the cleanup bill to clarify the authority to permit MEHKOs was
signed into law by the Governor on October 7, 2019. This law provides authority to cities or counties
that are authorized as enforcement agencies for CalCode to permit MEHKOs within the entirety of
a jurisdiction. Within San Joaquin County, this means that whatever action the County takes
regarding the MEHKOs will also apply to all cities with San Joaquin County.
A recent survey of all California Environmental Health agencies throughout the state shows that for
those responding, most have not taken action to "opt -in" due to a lack of direction/interest or general
concern with issues surrounding MEHKOs from their elected officials.
In terms of other California Counties, the Board of Supervisors for Siskiyou County adopted
Resolution 19-09 to formally prohibit MEHKOs and the boards for Yolo County and Butte County
decided to provide no direction to staff during informational updates on MEHKOs at their respective
board meetings, which has the same effect as not authorizing the operation of MEHKOs. Staff with
the City of Berkeley intend to bring the matter to their council and receive direction on MEHKOs. On
October 15, 2019, the City of Berkeley adopted an ordinance to authorize the permitting and
operation of MEHKOs within its jurisdiction, it is one of the few cities within California that has retail
food facility enforcement authority. The County of Riverside adopted an ordinance to authorize the
permitting and operation of MEHKOs within its jurisdiction. County of Riverside Ordinance #949
includes provisions as required by CalCode, permit fee requirements (set at $651.00), and
enforcement provisions, including administrative and civil penalties.
Thank you for your time and please contact me at (209) 468-3451 or kfoley(a_sigov.org with any
questions or comments you may have regarding this letter.
Sincerely,
�� 9DL4�7
Kasey Foley, Interim Director
San Joaquin County Environmental Health Department
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H-3
Lodi District Chamber of Commerce
35 South School Street
Lodi, California 95240
February 28, 2020
Lodi City Manager
222 West Pine
Lodi, California 95240
Mr. Schwabauer,
This letter is regarding the issue of AB 626 coming before the City Council on March 4"
Item H-3. The Lodi Chamber believes this is a very bad idea, foisted upon cities by the
legislature, legalizing Home Restaurants in residential neighborhoods.
• Terrific health concerns abound with this idea. One would think a certification
would be mandatory but ongoing operation causes need for periodic inspection
by Fire officials and food safety personnel could be an added cost to taxpayers.
• Residential and peaceful neighborhoods are not zoned for the traffic generation
by home restaurants. Potential of aggravation of neighbors would be correlated
to the frequency of home restaurant patrons. Needless irritation would abound.
• Lastly this is legislation that removes local control from the people of Lodi and
their government and the kind of community in which they want to live.
• These home restaurants cannot possibly be operationally compliant to the
standards required of every eating establishment now in Lodi. Grease traps,
right -sized sewage, water and controlling garbage generation. What could we
expect see... large 4 -cubic yard dumpster's in the home's driveway?
Once again, the State Legislature is out of touch with reality, seemingly trying to make life
more difficult for cities and taxpayers. While great needs abound such as roads and
highways, water storage, excessive regulation, over taxation and failure of post -secondary
education, and ineptness in housing, mental health and drugs fueling homelessness.
Pat Patrick
President - CEO
Lodi District Chamber of Commerce
Cc: Board of Directors & GRC