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Authorize the Director of Resource Management to execute a MEHKO AB 178 Grant Award Notification and Acceptance Agreement to secure $40,310 of State funds to assist local health departments’ implementation of the Micro Enterprise Home Kitchen Operation (MEHKO) program
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board of Supervisors authorize the Director of Resource Management to execute a MEHKO AB 178 Grant Award Notification and Acceptance Agreement to secure $40,310 of State funds to assist local health departments’ implementation of the Micro Enterprise Home Kitchen Operation (MEHKO) program.
SUMMARY/ DISCUSSION:
With enactment of AB 626 and AB 377 effective January 1, 2019, the California Health and Safety Code Retail Food Act (CalCode) was amended to provide Local Enforcement Agencies (primarily county Environmental Health departments) the option of allowing MEHKOs by resolution or ordinance. MEHKOs are residential home kitchens that can be operated and permitted as commercial food facilities. These new laws establish parameters for MEHKOs, including specific provisions on how an enforcement agency may regulate a MEHKO on residential property. In counties where the Environmental Health departments functions as the countywide Local Enforcement Agency, an action by a county to “opt in” would render the new MEHKO provisions applicable to all cities in addition to the unincorporated areas of that county. The Solano County Board of Supervisors adopted Resolution 2020-55 on April 7, 2020 to “opt in” and allow MEHKOs to operate within Solano County.
The purpose of this State-funded grant program as described in the enabling legislation and the grant agreement between the Workforce Development Board (WDB) and the CA Conference of Directors of Environmental Health (CCDEH) is to “assist local health departments and city code enforcement agencies to apply for reimbursements for costs incurred from the development of application forms, permitting processes, and initial site inspections and for city code enforcement activities related to MEHKOs in accordance with Assembly Bill AB 178 - Budget Act of 2022”.
Funds are available during the 2024/25 fiscal year to local governments for direct support in implementing MEHKO programs, including program development, public outreach, offsetting permit fees, and for enforcement. This assistance will be augmented by technical assistance available through CCDEH. Based on the grant allocation formula approved by the CCDEH Executive Committee, the grant allocation amount awarded to the Solano County Environmental Health Services Division will total $40,309.76.
Since the Board of Supervisors approved Resolution No. 2020 - 55 on April 7, 2020, to “opt in” and allow MEHKOs to operate in Solano County, Environmental Health has received twenty-six MEHKO applications, has issued twenty permits, and currently has thirteen active sites. Grant funds may be utilized to reimburse for inspections, program development, public outreach, offsetting permit fees, and enforcement activities. During FY2024/25, the division projects incurring expenses that can be reimbursed through this grant, particularly if new MEHKO applications are received and approved.
FINANCIAL IMPACT:
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2023/24 Working Budget. All costs and expenses associated with the implementation of this grant are reimbursable.
ALTERNATIVES:
The Board may choose to direct the Resource Management Environmental Health Division to not enter into an agreement with the State for funding through this reimbursement grant. This is not recommended, however because the Division would lose the opportunity to be reimbursed for up to $40,309.76 for work completed in implementing the MEHKO program.
OTHER AGENCY INVOLVEMENT:
County Counsel was consulted in preparation of this item.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION