|
DATE: |
March 13, 2024 and April 10, 2024 |
02 |
SUBJECT
ADMINISTRATIVE ITEM:
SECOND CONSIDERATION AND ADOPTION OF ORDINANCE:
Title
LOCAL MICROENTERPRISE HOME KITCHEN OPERATION ORDINANCE AMENDMENT AND RELATED CEQA EXEMPTION (3/13/2024 - Introduction and First Reading; 4/10/2024 - Second Reading) (DISTRICTS: ALL)
Body
OVERVIEW
The Department of Environmental Health and Quality (DEHQ) is the local enforcement agency of the California Retail Food Code for all 18 incorporated cities, as well as the unincorporated communities in the region. There are two types of home-based food service facilities that DEHQ regulates as part of their Food Program; Cottage Food Operation (CFO) and Microenterprise Home Kitchen Operation (MEHKO). A CFO is a home-based business where certain low-risk food products not requiring refrigeration are made in private home kitchens and sold as a fully packaged and labeled product to consumers. A MEHKO is a home-based business where home cooks can prepare and sell a wide range of foods in a home kitchen that require time and temperature control to prevent bacteria growth that can lead to foodborne illness.
On November 8, 2023 (6), the Board approved the first reading of the proposed MEHKO and the CFO program ordinance, including a few decisions from the dais that needed to be incorporated into the written ordinance attached to the Board letter for the second reading. On December 6, 2023 (1), the Board took unanimous action to approve the second reading of the proposed MEHKO and CFO program. However, due to an administrative error, the ordinance attached to the Board letter at the second reading on December 6, 2023, inadvertently did not include all of the Board’s decisions made during the first reading on November 8, 2023.
The ordinance approved on December 6, 2023, which became effective January 5, 2024, included Board selected options to:
• Authorize the continuation of a permanent MEHKO Program.
• Authorize MEHKO businesses to sell non-potentially hazardous food with up to two permitted carts.
• Allow MEHKO business to serve as a commissary with up to two permitted carts.
• Authorize CFO Businesses to sell non-potentially hazardous food with up to two permitted carts.
The ordinance approved on December 6, 2023, which became effective January 5, 2024, inadvertently did not include the Board’s decision on November 8, 2023, regarding the following selected options to:
• Approve an increase in the number of meals that a MEHKO business operating a cart can serve from current State Law of a maximum of 30 meals per day and no more than 90 meals per week to 80 meals per day and no more than 200 meals per week.
• Approve an increase in the maximum gross annual sales that a MEHKO business operating a cart can sell from current State Law of $100,000 per year to $150,000 per year.
Today, the Board is being requested to adopt an amendment to the ordinance for the MEHKO Program that includes the Board direction from November 8, 2023, that was not included in the December 6, 2023, approval due to an administrative error. Adoption of the proposed ordinances requires two steps. On March 13, 2024, the Board heard the first reading of the ordinance. The Board recommendation on March 13, 2024, inadvertently stated that the first hearing would adopt the Ordinance, instead of a first reading and introduction. Today’s action on April 10, 2024 will officially adopt the Ordinance on second reading.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
Consider and adopt the following Ordinance amending the County Code of Regulatory Ordinances (second reading).
ORDINANCE AMENDING A MICROENTERPRISE HOME KITCHEN OPERATION (MEHKO) PROGRAM THROUGHOUT THE COUNTY OF SAN DIEGO
EQUITY IMPACT STATEMENT
Continuing to permit and regulate home-based food business, such as Microenterprise Home Kitchen Operation (MEHKO) and/or Cottage Food Operation (CFO), in the region would result in economic benefits to local communities and home cooks from a wide variety of backgrounds. Data from Riverside County, the first county to adopt a MEHKO program, found that MEHKO operators were 85% people of color and 60% women. Currently, there are 606 CFO and 73 MEHKO home based food businesses in the San Diego region. Home based food businesses create opportunities for self-reliance and empowerment for local community members, such as immigrants, by increasing their family income and contributing positively to the local economy.
SUSTAINABILITY IMPACT STATEMENT
The Microenterprise Home Kitchen Operation (MEHKO) program promotes new, home-based businesses, supporting the County of San Diego (County) Strategic Initiative of creating policies to reduce and eliminate poverty, promoting economic sustainability for all, by providing just and equitable access to vulnerable populations in partnerships with communities. Additionally, the MEHKO Program supports the County Strategic Initiative of protecting and promoting our agricultural resources by protecting the health and wellbeing of everyone in region by expanding the market for healthy, sustainable, and local food.
FISCAL IMPACT
There is no fiscal impact associated with today’s recommendation to adopt an amendment to the ordinance for the MEHKO Program. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
Due to the high start-up costs for restaurants, it is challenging for many cooks to benefit independently from their labor, skills, and limited resources, reducing an opportunity to produce a viable income. Alternatively, home cooks may choose to operate illegally, which can be treated as a criminal act. Home-based businesses, such as Microenterprise Home Kitchen Operation and Cottage Food Operation Programs, have the following positive impacts:
• Regulates unsafe private kitchen practices that may cause foodborne illness when food is cooked at unpermitted facilities.
• Promotes food justice in communities that do not have access to healthy and affordable food options.
• Enables home cooks, who are mostly underrepresented groups such as women, immigrants, and people of color, to use their skills to generate income.
Home-based businesses allow home cooks of all socioeconomic levels the opportunity to start a home-based business, preparing and serving food to the public throughout the region.
Details
ADVISORY BOARD STATEMENT
On September 27, 2023, the Department of Environmental Health and Quality (DEHQ) presented information on the options for a local Microenterprise Home Kitchen Operation (MEHKO) Program to the Environmental Health and Quality Advisory Board (EHQAB). EHQAB unanimously voted to provide a recommendation to the Board of Supervisors in support of adopting a permanent MEHKO Program.
On October 3, 2023, DEHQ also presented information to the Health Services Advisory Board (HSAB). HSAB took no formal position and had no concerns that were shared during the meeting.
BACKGROUND
The California Retail Food Code (State law) establishes uniform health and sanitation standards at the State level for the regulation of retail food operations (food facilities) to prevent foodborne illness. State law defines a food facility as an operation that stores, prepares, serves, sells, or otherwise provides food for human consumption at the retail level, and includes restaurants, mobile food trucks, grocery stores, delis, food carts, and schools. The Department of Environmental Health and Quality (DEHQ) is the local enforcement agency of State law for all 18 incorporated cities (local jurisdictions), as well as the unincorporated communities in the region. DEHQ implements a regulatory Food Program conducting inspections at more than 15,000 food facilities annually, focusing on compliance with State law and reviewing food handling practices to protect public health and prevent the incidence of foodborne illness.
There are two types of home-based food service facilities that DEHQ regulates as part of their Food Program; Cottage Food Operation (CFO) and Microenterprise Home Kitchen Operation (MEHKO). A CFO is a home-based business where certain low-risk food products not requiring refrigeration, such as bread, pie, fruit jam, and dried food, are made in private home kitchens and sold as a fully packaged and labeled product to consumers. A MEHKO is a home-based business where home cooks can prepare and sell a wide range of foods in a home kitchen (like a mini restaurant), including foods, such as meat, fish, poultry, and dairy products, that require time and temperature control to prevent bacteria growth that can lead to foodborne illness.
On November 8, 2023 (6) the Board took action to authorize the continuation of a local MEHKO Program and approved the first reading of the proposed MEHKO and CFO Program ordinance, including a few decisions from the dais that needed to be incorporated into the written ordinance attached to the Board letter for the second reading. On December 6, 2030 (1), the Board took action to unanimously approve the second reading of the proposed MEHKO and CFO program. However, due to an administrative error, the ordinance attached to the Board letter at the second reading on December 6, 2023, inadvertently did not include all of the Board’s decisions made during the first reading on November 8, 2023.
The ordinance approved on December 6, 2023, which became effective on January 5, 2024, included Board selected options to:
• Authorize the continuation of a permanent MEHKO Program.
• Authorize MEHKO businesses to sell non-potentially hazardous food with up to two permitted carts.
• Allow MEHKO business to serve as a commissary with up to two permitted carts.
• Authorize CFO Businesses to sell non-potentially hazardous food with up to two permitted carts.
The ordinance approved on December 6, 2023, which became effective January 5, 2024, inadvertently did not include the Board’s decision on November 8, 2023, regarding the following selected options to:
• Approve an increase in the number of meals that a MEHKO business operating a cart can serve from current State Law of a maximum of 30 meals per day and no more than 90 meals per week to 80 meals per day and no more than 200 meals per week.
• Approve an increase in the maximum gross annual sales that a MEHKO business operating a cart can sell from current State Law of $100,000 per year to $150,000 per year.
Today, the Board is being requested to adopt an amendment to the ordinance for the MEHKO Program that includes the Board direction from November 8, 2023, that was not included in the December 6, 2023, approval due to an administrative error. Adoption of the proposed ordinances requires two steps. On March 13, 2024, the Board heard the first reading of the ordinance. The Board recommendation on March 13, 2024, inadvertently stated that the first hearing would adopt the Ordinance, instead of a first reading and introduction. Today’s action on April 10, 2024 will officially adopt the Ordinance on second reading.
ENVIRONMENTAL STATEMENT
Today’s proposed actions are exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(c)(3) of the State CEQA Guidelines. Section 15061(c)(3) is applicable provides that a project is exempt from CEQA review where “it can be seen with certainty that there is no possibility the activity in question may have significant effect on the environment.” Today’s action amends the ordinance for the Microenterprise Home Kitchen Operation (MEHKO) program and Cottage Food Operation (CFO) Program by allowing expansion to these home-based businesses. Any potential changes to the MEHKO or CFO Programs would be subject to strict limitations on how many meals could be prepared, cooked, and served on the same day, as well as on a weekly basis, from each home-based business. Therefore, the action is exempt from CEQA review because it can be seen with certainty that the project would not have a significant impact on the environment.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions support the Sustainability and Community Strategic Initiatives in the County of San Diego’s 2024-2029 Strategic Plan by allowing enhanced opportunities for small home businesses regardless of socioeconomic status and strengthening the local food system by potentially providing a healthy food source in areas of region identified in the Food System Action Plan as food deserts.
Respectfully submitted,
DAHVIA LYNCH
Interim Deputy Chief Administrative Officer
ATTACHMENT(S)
Attachment A.1 - Ordinance Amending a Microenterprise Home Kitchen Operation (MEHKO) Program Throughout the County of San Diego (Strikeout/Underline)
Attachment A.2 - Ordinance Amending a Microenterprise Home Kitchen Operation (MEHKO) Program Throughout the County of San Diego (Clean)