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Home My WebLink AboutAGENDA REPORT 2020 0603 REG CCSA ITEM 09ACITY OF MOORPARK,  CALIFORNIA City Council Meeting of June 3, 2020 ACTION Received report and provided direction to staff on feedback to be forwarded to the Ventura County Board of Supervisors. BY B.Garza. A. Consider Presentation Regarding Microenterprise Home Kitchen Operations (MEHKO) and Direct Staff to Provide Feedback to the Ventura County Board of Supervisors. Staff Recommendation: Receive a report regarding Microenterprise Home Kitchen Operations and direct staff to provide feedback to the Ventura County Board of Supervisors opposing Microenterprise Home Kitchen Operations within the City of Moorpark. (Staff: Doug Spondello) Item: 9.A. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Karen Vaughn, Community Development Director BY: Douglas Spondello, Planning Manager DATE: 06/03/2020 Regular Meeting SUBJECT: Consider Presentation Regarding Microenterprise Home Kitchen Operations (MEHKO) and Direct Staff to Provide Feedback to the Ventura County Board of Supervisors BACKGROUND In 2018, Assembly Bill (AB) 626 established microenterprise home kitchen operations (MEHKO) as a new category of residential retail food facilities. The provisions of AB 626 were later refined in 2019 by AB 377. A MEHKO is defined as a food facility operated by a resident in a private home (an owned or rented, single-family or multi- family dwelling) where food is stored, handled, prepared, and served to consumers. Food prepared by MEHKOs can be consumed on-site, picked up or be delivered just like a traditional commercial restaurant. Catering is prohibited, and MEHKO establishments are limited to serving 30 meals per day and 60 meals per week. MEHKOs are also limited to one employee, and gross annual sales cannot exceed $50,000. The law also exempts MEHKOs from provisions of the building and fire codes that apply to commercial occupancy and commercial kitchens. MEHKO operations are exempt from City planning and zoning regulations related to land use, parking, and other zoning standards, as well as requirements of the retail food code related to handwashing facilities, plan review, exhaust hoods, and other commercial kitchen standards. The law designates the local health agency as the enforcement agency with jurisdiction over food facilities for the permitting and enforcement of MEHKOs. A permit from the health agency is required to operate. The Ventura County Environmental Health Division (VCEHD) provides permitting and other health services related to food facilities, and therefore, VCEHD would be the sole permitting authority of MEHKO if the program is adopted within Ventura County. The law also limits inspections of MEHKOs by the local health agency to a single, scheduled inspection per year, though additional inspections are allowed in response to a complaint. Item: 9.A. 129 Honorable City Council 06/03/2020 Regular Meeting Page 2 MEHKOs may operate within counties where the Board of Supervisors (BOS) has specifically passed an ordinance to ‘opt-in’ to the program. Pursuant to AB 377, if a county authorizes the permitting of MEHKO, all cities and the unincorporated areas within that county, regardless of any existing city ordinance or prohibition of MEHKOs, cannot opt-out of the County’s MEHKO permitting program. The Ventura County BOS has not taken action on this issue, and no ordinance is currently in effect in Ventura County that would allow a MEHKO to be permitted. The BOS will be considering whether to opt into the program at a future meeting. In anticipation of this discussion, County staff has requested input from the City of Moorpark in order to reflect local feedback in their report to the Board. DISCUSSION According to supporters of MEHKO, including COOK Alliance and the California Association for Micro Enterprise Opportunity, the intent of the MEHKO program is to: • Decriminalize and limit local regulations of home kitchen operations; • Promote entrepreneurship and economic empowerment among low income and marginalized communities; • Improve access to healthy food by providing home-cooked meals; • Create regulations for food handling and safety; • Expand the existing “cottage food operation” laws beyond non-perishable food to include perishable and more substantial meal offerings; and • Provide a stepping-stone to restaurant ownership. Locally, the Ventura County Economic Development Collaborative also advocates for increasing access to commercial kitchen space and building a robust network of food infrastructure that scales from local cottage (residential) food industries through commercial kitchens 1. MEHKOs introduce traditionally commercial uses into residential areas. As adopted, the legislation removes all ability for the County or City to establish regulations to address local impacts. While local interest in a MEHKO program is unknown at this time, the use could result in significant impacts to sanitation, traffic congestion, parking, and building and fire safety. As an example, residential plumbing systems may not be sufficient to accommodate unfiltered commercial food waste and grease discharged by the proposed uses (up to 30 meals per day and 60 meals per week). Residential communities may also be unduly impacted by commercial traffic, loading, and parking impacts associated with MEHKOs. The law’s exemption from building and fire safety requirements also present potential life safety risks, as fire alarm and suppression systems, exhaust systems, and exiting requirements will not apply. The City’s zoning program establishes clear performance standards for uses within each zone that consider the unique community needs and maintain the City’s community character. These safeguards are non-enforceable under the current 1 Ventura County Economic Development Collaborative, Enabling Ventura County’s Entrepreneurial Ecosystem (2018), page 9 130 Honorable City Council 06/03/2020 Regular Meeting Page 3 MEHKO legislation, in favor of a “one-size fits all” approach to statewide regulation. As a result, the MEHKO program is not consistent with the City of Moorpark’s 2019 Legislative Platform, which states that the City will “support efforts that are consistent with the doctrine of “home rule” and the local exercise of police powers, through planning and zoning processes, over local land use”. FISCAL IMPACT There is no fiscal impact associated with receipt of this report. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION Receive a report regarding Microenterprise Home Kitchen Operations and direct staff to provide feedback to the Ventura County Board of Supervisors opposing Microenterprise Home Kitchen Operations within the City of Moorpark. Attachment 1: County Presentation 131 Resource Management Agency Environmental Health Division (EHD) 800 S. Victoria Ave. Ventura, CA 93009-1730 www.vcrma.org/divisions/envir onmental-health Microenterprise Home Kitchen Operations (MEHKOs) Ventura County Environmental Health 132 MEHKO Summary AB 626 & AB 377 – Assemblyman Eduardo Garcia •Allows for small-scale (restaurant), direct food sales to consumers from home-based food facilities. •Can be operated from single or multi-family homes, owned or rented. •An “opt-in” by the Board of Supervisors automatically opts-in all cities within the county. Ventura County Environmental Health 133 Intent of Legislation •Decriminalized and limited local regulation of home kitchen operation. •Promote entrepreneurship and economic empowerment among low income and marginalized communities •Home cooked meals can improve access to healthy food. •Creates regulation for food handling and safety •Permitted cottage food operations are limited to non- perishable food – MEHKOs allow for perishable “restaurant style” food •Limited scale of sales can provide stepping stone to restaurant ownership Ventura County Environmental Health 134 Ventura County Environmental Health 135 Operational Requirements •Food facility operated by a resident in a private home •Food must be prepared, cooked and served on the same day. •Food can only be consumed on-site, picked up, or delivered. •Direct sales only •Limited to no more than 30 meals per day or 60 meals per week. •No more than $50,000 in gross annual sales. •No more than one employee. •Must have a permit to operate from EHD. •One scheduled routine inspection per year allowed •Additional inspections allowed for response to a complaint Ventura County Environmental Health 136 Planning and Building and Exemptions Ventura County Environmental Health •A MEHKO shall be considered a residence for all purposes of State Uniform Building Standards Code and Local building and fire codes •Use of a residence for the purpose of a MEHKO shall not constitute a change in occupancy •For zoning purposes, a city or county shall not impose any restriction on MEHKO in a residential dwelling 137 Concerns Ventura County Environmental Health •Sanitation deficiencies •Permit implies compliance with restaurant requirements •Inspection restrictions- one inspection per year •Exemptions from Retail Food Code •Handwashing requirements •Plan review process •Exhaust hood ventilation •Potential increase in food-borne illness incidents •Potential Impacts to residential neighborhoods •Traffic, parking, noise, odors, occupancy, fire hazards, and ADA accessibility 138 Ventura County Environmental Health 139 Option 1: OPT IN Ventura County Environmental Health •Pathway to compliance for existing home- based food operations. Pros Cons •Uniform food safety practices within the county •Increase entrepreneurship opportunities •Cities do not have the option to opt out or impose restrictions •Potential impacts to residential neighborhoods 140 Option 2: OPT OUT Ventura County Environmental Health •Enforcement Challenges •Limits access to home-based entrepreneurship Pros •Simple implementation •No additional impact on residential neighborhoods Cons 141 Next Steps Ventura County Environmental Health •Present MEHKO information and solicit comments from city planning directors •Present the MEHKO options to the Ventura County Board of Supervisors in summer 2020 142 Questions Ventura County Environmental Health MEHKO Contacts: Betty Huff, Program Manager Consumer Food Protection Program Environmental Health Division Betty.huff@ventura.org or (805)654-2814 Charles Genkel, Director Environmental Health Division Charles.Genkel@ventura.org or (805)654-2818 143