AGENDA CITY COUNCIL MEETING CITY HALL COUNCIL CHAMBERS 520 J Street Los Banos, California MAY 1, 2013

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1 LOS Banos Al the Crossroads oj California AGENDA CITY COUNCIL MEETING CITY HALL COUNCIL CHAMBERS 520 J Street Los Banos, California MAY 1, 2013 Ifyou require special assistance to attend or participate in this meeting, please call the City Clerk's Office@ (209) at least 48 hours prior to the meeting. The City oflos Banos complies with the Americans with Disabilities Act (ADA) of f1 Si requiere asistencia especial para atender 0 participar en esla junta por favor liame a 18 oficina de fa Secretaria de la ciudad af (209) a /0 menos de 48 horas previas de lajunta. La Cuidad de Los Banos cumple con la Acta de Americanos con Deshabilidad (ADA) de Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the meeting and in the City Clerk's office located at City Hall, 520 J Street, Los Banos, California during normal business hours. In addition, such writings and documents may be posted on the City's website at Cualquier escritura 0 los documentos proporcionaron a una mayoria del Ayuntamiento respecto a cualquier articulo en este orden del dfa sera hecho disponible para la inspecci6n publica en la reuni6n y en la oflcina de la Secretaria de la ciudad en City Hall, 520 J Street, Los Banos, California durante horas de oficina normales. Ademas, tales escrituras y los documentos pueden ser anunciados en el website de fa ciudad en 1. CALL TO ORDER 5:30 PM 2. PLEDGE OF ALLEGIANCE. 3. ROLL CALL: (City Council Members) Faria, Lewis, Silveira_, Stonegrove, Villalta _ 4. CONSIDERATION OF APPROVAL OF AGENDA 5. CLOSED SESSION. (Members of the public may address the City Council on the following closed session items. Speakers are limited to a five (5) minute presentation. Detailed guidelines are posted on the Council Chamber informational table.) Los Banos City Council Agenda - May 1, 2013 Page 1 of 3

2 A. Conference with Labor Negotiators, Pursuant to Government Code Section , Agency Designated Representatives: Acting City Manager/Police Chief Brizzee, City Attorney Vaughn, City Clerk/Administrative Services Director Mallonee, Accounting & Budget Supervisor Williams, Legal Counsel Tuffo; Employee Organizations: Los Banos Police Officers Association (LBPOA), Los Banos Police Sergeants Association (LBPSA), Los Banos Police Dispatchers/Community Services Officers Association (LBPDCSOA), Los Banos Fire Fighters Association (LBFFA). 6. PRESENTATION - NATIONAL DAY OF PRAYER PROCLAMATION. 7. PUBLIC FORUM. (Members of the public may address the City Council Members on any item of public interest that is within the jurisdiction of the City Council; includes agenda and non-agenda items. No action will be taken on non-agenda items. Speakers are limited to a five (5) minute presentation. Detailed guidelines are posted on the Council Chamber informational table.) 8. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. (Items on the Consent Agenda are considered to be routine and will be voted on in one motion unless removed from the Consent Agenda by a City Council Member.) A. Check Register for # # in the Amount of $275, Recommendation: Approve the check register as submitted. B. Street Closure Request from the Los Banos Elks Lodge No for the 500 Block of Sixth Street for a Car Show on Saturday, June 29, 2013 from 1:00 p.m. to 7:00 p.m. Recommendation: Approve the street closure request as submitted. C. Agreement between the City of Los Banos and the Los Banos Unified School District to participate in the School Resource Officer Program from July 1, June 30,2014. Recommendation: Approve the agreement as submitted. D. City Council Resolution No Authorizing the City to Access Federal Level Criminal History Information for Non-Public Safety Employment Applicants. Recommendation: Adopt the resolution as submitted. E. City Council Resolution No Amending the Fiscal Year Budget by Increasing the Appropriation Amount in the Public/Education/Government (PEG) Franchise Fund for Expenditures in the Amount of $1,360 to Address Failed Audio Equipment that Supports the Council Chambers. Recommendation: Adopt the resolution as submitted. Los Banos City Council Agenda - May Page 2 of 3

3 9. PUBLIC HEARING. (If you challenge the proposed action as described herein in court, you may be limited to raising only those issues you or someone else raised at the public hearing described herein or in written correspondence delivered to the City at, or prior to, the public hearing.) A. Public Hearing - To Receive Public Comment and Consideration of Revisions to the Los Banos Zoning Ordinance Amending Title 9, Chapter 3, Section and Adding Article 39 to the Los Banos Municipal Code Relating to Cottage Food Operations. (To be continued to May 15, 2013) 1) Ordinance No Amending Sections of the Zoning Code of the Los Banos Municipal Code Relating to Cottage Food Operations Amending Title 9, Chapter 3. Recommendation: Receive staff report, open public hearing, receive public comment, continue public hearing to May 15,2013 to re-introduce Ordinance No ADVISEMENT OF PUBLIC NOTICES. (No Report) 11. CITY MANAGER REPORT 12. CITY COUNCIL MEMBER REPORTS. A. Scott Silveira B. Elizabeth Stonegrove C. Tom Faria D. Deborah Lewis E. Mayor Mike VillaIta 13. ADJOURNMENT I hereby certify under penally of perjury under the laws of the State of California, that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. ~-R.~~ Lucille L. Mallonee, City Clerk Da.ted this 25 th day of April 2013 Los Banos City Council Agenda - May 1, 2013 Page 3 of 3

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5 CK # # /01113 $275, Bank Reconciliation Checks By Date 04/ :32 PM User: jdemelo Cleared and Not Cleared Checks LOS Banos 1.1 (~I'{}~~,,~ t.u Check No Check Date Name Comment ModuleVoid Clea,' Date Amount /2013 David Santos AP /12/2013 Terryberry AP /2013 Tractor Supply Credit Plan AP 2, /12/2013 Triangle Rock Products AP 1, /12/2013 U.S. Bank Equipment Finance AP /12/2013 US Bank Corp Pymt System AP 5, /2013 Credit Bureau Associates for AP /12/2013 Credit Bureau Associates for AP /12/2013 Credit Bureau Associates for AP /12/2013 Credit Bureau Associates for AP /12/2013 Jerri Terry Realty AP /2013 Westhill Properry Mgmt AP /2013 Blanca Aguilar AP /2013 China #1 Buffet AP /12/2013 Maria Simas AP /2013 Joseph & Michelle Latronica AP /12/2013 Blossom Valley Realty, JR Souz AP /12/2013 Credit Bureau Associates For AP Void /12/2013 Home Sweet Home Property Mana AP /2013 Home Sweet Home Property Mana AP /12/2013 Hilda Esparza AP /12/2013 Lidia Hidalgo Beauchamp AP /12/2013 Regina! & Maria Price AP /12/2013 Andrei & Iryna Pashkovich AP /2013 Nabi1 & Basma Batmani AP /2013 Beverly Viets AP /12/2013 Luis Maciel AP / Angela Garcia AP / Cassinerio Family LLC AP /2013 Jeffrey Rhein AP /2013 Credit Bureau Associates for AP Void 1, /2013 Law Offices ofwilliam A Vaugh AP 6, /12/2013 Verizon Wireless AP /12/2013 Westside Water Conditioning AP /12/2013 Young's Air Conditioning AP /12/2013 Zee Medical Service Co AP Aflac-Customer Service AP / Aflac-Customer Service AP /19/2013 Aflac-Customer Service AP /2013 Aflac~Customer Service AP /19/2013 Ameripride Valley Unifonn Serv AP /2013 Anthony Gomes Electric Service AP 2, /2013 Aramark Unifonn Ser Inc AP /19/2013 Ascent Aviation Group, Inc. AP 24, /19/2013 AT&T AP /19/2013 Bank ofamerica AP 86, /2013 Bank ofamerica AP 2, /19/2013 Bank ofamerica AP 9, /19/2013 BSK AP Ca Dept ofjustice AP BR - Checks by Date (04/22/2013-2:32 PM) Page

6 Check No Check Date Name Comment ModuleVoid Clear Date Amount /2013 Cal Traffic AP 1, /2013 Carquest Auto Parts AP /19/2013 Central Sanitary Supply AP /19/2013 Corneast AP /19/2013 CSG Consultants Inc. AP 5, /2013 Davidson's Training AP /19/2013 Electrical Distributors Co. AP /19/2013 Fastenal Company AP /19/2013 Ferguson Enterprises Inc DBA AP /19/2013 Ferrellgas, Inc. AP 1, /19/2013 Fire Station Outfitters LLC AP 4, /2013 Food 4 Less AP /2013 Richard Frencb AP /19/2013 Hartford Life Ins Co AP /19/2013 Hartford Life Ins Co AP 5, /2013 Helena Chemical Co Inc AP /2013 Hi Tech Emergency Vehicle Scrv AP 2, /19/2013 Home Depot AP 1, /2013 Interstate Truck Center, LLC AP /19/2013 1CMA RC Headquarters AP 1, /19/2013 J W Professional Janitor AP 4, /2013 KMartW 3764 AP /2013 Doug Kirkpatrick AP /19/2013 Los Banos Car Wash Inc AP /19/2013 Los Banos Express Oil & Lube AP /19/2013 Los Banos Feed & Ranch Supplie AP /2013 Los Banos Fitness & AP / Los Banos Police Assn AP 2, /19/2013 Lucas Business Systems AP /2013 L & W Metals MFG, LLC AP 4, /2013 Marfab Inc AP /19/2013 Jose Melendrez Sr. AP /19/2013 Merced Chevrolet Inc. AP /19/2013 Merced County Dept OfAgricult AP /19/2013 Merced Hesston Inc AP /2013 Napa Auto Parts AP 1, /19/2013 NCCA Keys Conference AP 1, /19/2013 Nextel AP /19/2013 North Central Laboratories AP /2013 The Office City AP /2013 OSE AP /19/2013 Maria Ortega AP /19/2013 P G & E Company AP /2013 Nationwide Retiremt Solut AP 1, /2013 PERS Long Tenn Care AP /2013 Pinnacle Medical Group AP /19/2013 Professional Fire Fighter AP /19/2013 Jeremy Rahn AP /2013 Rick's Auto Body AP 6, /19/2013 Ronny's Landscaping AP 24, /19/2013 Ronny's Landscaping AP 7, /19/2013 Ronny's Landscaping AP 3, /19/2013 Santos Ford Lincoln Mercury, I AP /19/2013 Save Mart Supennarkets AP /19/2013 Snap On Tools AP /19/2013 Sorensens True Value AP /19/2013 Spriggs Inc. AP /19/2013 State Disbursement Unit AP /19/2013 Trans County Title Co AP 1, /19/2013 U.S. Bank Equipment Finance AP /19/2013 Credit Bureau Associates for AP 1, /19/2013 Irene Gentry AP BR - Checks by Date (04/ :32 PM) Page 2

7 Check No Check Date Name Comment ModuleVoid Clear Date Amount /19/2013 Westhill Property Mgmt AP /2013 Shatdeo Lal AP /2013 Home Sweet Home Property Mana AP /2013 Home Sweet Home Property Mana AP /2013 Delin Li AP /19/2013 Jagrup Pannu AP /19/2013 Donald Gamer AP /19/2013 Aleksey Dvorkin AP /2013 Melissa Santos AP /19/2013 Martin Delarosa AP /19/2013 Elias Reyes Jf AP /19/2013 BayCal Las Cruces Partners. LL AP /2013 Michael Dabaie AP Outlet 152 AP /19/2013 Gilbert and Christine Mendias AP /19/2013 Verengo AP /2013 Westamerica Bank - Cafeteria P AP 8, /2013 Windecker Inc AP 21, /19/2013 Young's Air Conditioning AP Total for Valid Checks: 275, Total Valid Checks: Total Void Checks: Total Checks: Break in Check Sequence due to the following Check # (lmused blank checks) Check # (payroll checks) BR - Checks by Date (04/22/2013-2:32 PM) Page 3

8 LOS Banos \ {ir i;" < "" Agenda Staff Report TO: FROM: DATE: SUBJECT: Mayor and City Council Members Gary Brizzee, Chief of Policek May 1, 2013 Street Closure Request Block Sixth Street TYPE OF REPORT: Consent Agenda Recommendation: Authorize street closure. Background: The Los Banos Elks Lodge No is requesting permission for a street closure of the 500 block of 6 th Street, for a small car show event planned for Saturday, June Discussion: A signed petition by all residents affected has been completed and turned in for the 500 Block of Sixth Street, for Saturday, June 29, 2013, between the hours of 1:00 p.m. and 7:00 p.m. A copy of the signed petition and event flyer is attached for your review. This event is community oriented, and our support is recommended. Fiscal Impact: No fiscal impact. Reviewed By: ~ Steve Carrigan, City Manager

9 , 11e(Q..-~~ Exalted R41er ISl:> ~ tiert{)(l6 Los Banos, CA 9jbj~ (408) ~uv.jdj-e.-'~ SecretarY Los i:)znos, c.a bB (209) (Home) I (209) (Cell) (209) (Fax) Mailing Address: LOS BANOS ELKS LODGE No P. O. Box 807 Los Banos, CA D807 A Fraternal Organization LODGE ADDRESS: 565 'F Sireel Los Banos, CA (209) (Office) I (209) (Fax) March 29, 2013 City of Los Banos Police Dept. Attn: Denise The Elks Lodge of Los Banos is having a small car show on Sat June 29 th and would like to request a street closer for the day of 6 th & EStreet. I ~- 7~ I have received signatures and permission from the neighbor's on this street. ThanklY~u_r.~ ---- l!wj' Cookie Rendon Esteemed Loyal Knight _0Al(~

10 $.29ns~_11:L~<~ l<o~~_barlqs_.~r;1 ~,,June 29 th 2013, Los Banos Elks Lodge #2510, located at 565 "E" Street Los Banos CA $12.00 per person ~ includes Dhu!E::r'.& Dance 1/2 Ib Hamburgers, Hotdogs, French Fries, Chili Beans Dance to 50's & 60's Music by D,J Roseanna Alva Car Show entry $15: Trophies I 6 classes Rat Rods, Street Rods, Muscle Cars Classic Cars 50-64, Antique to -49, Best in Show, All Cars Must Register, Car Show 2:00PM-6:00PM Judging and Awards 6-7PM, Dim'!e!' 7-BPM, Dal'Oeil: 8 12PM Mor'e Infarmation and Contacts: Richard Frontella , Stan Avis Susie Salas , Larry Johnson ELKS CARE ELKS SHARE

11 LOS Banos TO: FROM: Mayor and City Council Members ~ary Brizzee, Chief of Police DATE: May 1, 2013 SUBJECT: School Resource Officer MOU, With LBUSD TYPE OF REPORT: Consent Agenda Recommendation: That the City Council approve and authorize the signing of a Memorandum of Understanding between the City of Los Banos and the Los Banos Unified School District for School Resource Officer services. Background: For many years the City and School District have shared costs related to having a School Resource Officer available at local schools. Last year the District paid 75% of the officer's wages and benefits and the City funded related vehicle, training, equipment, K-9 and overtime costs. The SRO Program is of great benefit to the District and City. It provides for enhanced security at school campuses and specially trained school-police services. Discussion: This year the District will continue to fund 75% of the officer's wages and benefits. The City will fund the other 25% and use that officer during the summer months for vacation relief and perishable skills refresher training. This MOU also allows for the reimbursement for staff time spent at school events such as football games and School Board meetings. The City Attorney has reviewed and approved the MOU. Fiscal Impact: The result of funding 25% of the officer's wages and benefits will be offset to some degree by cost savings related to less overtime being spent for vacation relief during the summer months. The City's share of wages and benefits will be $29, The Districts portion (75%) equates to, $88, Attachments: SRO MOD

12 AGREEMENT BETWEEN THE CITY OF LOS BANOS AND THE LOS BANOS UNIFIED SCHOOL DISTRICT TO PARTICIPATE IN THE SCHOOL RESOURCE OFFICER PROGRAM JULY 1, JUNE 30, 2014 THIS AGREEMENT entered into this day of,2013, by and between the Los Banos Unified School District, a public school district, (DISTRICT) and the City oflos Banos, a municipal corporation, (CITY). RECITALS WHEREAS, CITY is a municipal corporation dilly organized and validly existing under the Constitution and the laws ofthe State ofcalifornia. WHEREAS, DISTRICT is a political subdivision of the State of California located in Merced County, California, and is organized and exists pursuant to the laws of the State ofcalifornia. WHEREAS, the CITY and the DISTRICT wish to engage in a program to acquaint school children with Law Enforcement Officers and promote relations and respect between youth and Law Enforcement. WHEREAS, CITY employs sworn peace officers specially trained, experienced and competent to provide the Services available through the School Resource Officer Program. WHEREAS, for the last several years, the CITY and the DISTRICT have funded a School Resource Officer Program (Program) whereby the CITY has provided sworn peace officers to District Facilities. WHEREAS, the Program enhances campus safety and fosters a positive rapport between police, school administrators, facuity, students, and parents.

13 WHEREAS, DISTRICT is authorized to enter into this Agreement pursuant to the laws ofthe State ofcalifornia. WHEREAS, the parties desire to continue the Program on the terms and in the manner provided in this Agreement. AGREEMENT NOW, THEREFORE, the CITY and the DISTRICT mutually agree as follows: 1. TERM. The term ofthis Agreement shall commence on July 1,2013. This AGREEMENT shall expire on June 30, 2014, unless terminated as specified in Section CITY SERVICES. In addition to other duties specified in this Agreement, CITY shall do the following: a. The CITY will provide one full time sworn peace officer with the Los Banos Police Department to serve as a School Resource Officer during the traditional school year, not to include summer school. b. The Police Officer assigned to serve as School Resource Officer shall receive appropriate training in the Program. c. The School Resource Officer shall serve under the direct supervisory control of the Chief of Police or his/her designed subordinate. The School Resource Officer supervisor will coordinate the services of the School Resource Officer with DISTRICT and school site staff. d. To the extent permitted by law, LBPD and DISTRICT will regularly exchange information about criminal activity and crime trends in the community and at school sites. 2

14 e. The School Resource Officer shall continue to participate in other types of training, meetings, etc., when deemed appropriate by the ChiefofPolice. f. In order to maintain the patrol skills ofthe Officer assigned as School Resource Officer it may be necessary for the CITY, in its sole discretion, to temporarily remove the Officer from the Program and in that event assign a temporary replacement for the School Resource Officer 3. DISTRICT DUTIES. In addition to other duties specified in this Agreement, DISTRICT shall do the following: a. DISTRICT will designate a staff member to serve as liaison to the Los Banos Police Department to facilitate communication between DISTRICT personnel and the School Resource Officer and coordinate the Officer's activities with DISTRICT activities and events. b. DISTRICT personnel shall cooperate with the School Resource Officer to facilitate hislher performance pursuant to this Agreement. c. DISTRICT shall provide the School Resource Officer with a place to work, furniture, necessary supplies and phone service. 4. OPERATION PROCEDURES AND FUNDING. a. The School Resource Officer shall remain a CITY employee with all the rights and benefits of all other employees of hislher classification. Further, such Officer shall be covered by the CITY's workers' compensation insurance while serving as School Resource Officer. b. In the event of a disaster or unusual occurrence, the School Resource Officer may be temporarily removed from the program to supplement police requirements. In the 3

15 event of such occurrence, the DISTRICT's share of the cost for the program shall be reduced by the Officer's salary for the number ofhours lost to the program. c. The Officer will not be replaced nor will the DISTRICT share of cost be reduced during times when the School Resource Officer is offwork on vacation, C.T.O., sick leave, or job injury. Planned time off, such as vacations and C.T.O. shall be coordinated with the School Superintendent or his/her designee and the ChiefofPolice or his/her designee. d. DISTRICT shall pay CITY seventy five-percent (75%) of the total compensation paid the Officer by CITY (currently total annual compensation is $118,122.00). The term "total compensation" includes salary, benefits, and incentives as those exist on the Effective Date ofthis Agreement. DISTRICT shall pay its share ofthe total compensation of the Officer within thirty (30) days of receipt of an invoice from CITY. e. The DISTRICT may request the CITY to provide additional services by an Officer during evening or weekend events such as School Board Meetings and Football Games or other DISTRICT-sponsored events. DISTRICT shall pay CITY all costs that CITY incurs (including total compensation) in providing additional services as requested by the District, with the understanding that CITY is generally required to pay Officers at least one and one-half (l-1i2) times their regular rate ofpay for overtime plus 7.65% for Social Security and MediCare contribution. DISTRICT shall pay for supplemental services within thirty (30) days ofreceipt ofan invoice from CITY. 4

16 5. INDEMNIFICATION. a. District Obligations. DISTRICT agrees to defend, indemnify and hold CITY, its elected and appointed officials, officers, and employees hannless against and from any and all losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arising out of or in any way connected with the DISTRICT's negligent performance ofthis Agreement. DISTRICT assumes workers' compensation liability for injury or death ofits officers, agents, employees and volunteers, and assumes no workers' compensation responsibility for the elected and appointed officials, officers, and employees ofthe CITY. b. City's Obligations. CITY agrees to defend, indemnify and hold DISTRICT, its officers, agent, employees and volunteers hannless against and from any and all losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arising out of or in any way connected with CITY's negligent performance of this Agreement. CITY assumes worker's compensation liability for injury or death of its elected and appointed officials, officers, and employees, and assumes no workers' compensation responsibility for the officers, agents, employees and volunteers of the DISTRICT 6. TERMINATION. DISTRICT or CITY may terminate this Agreement without cause anytime after the Effective Date, by giving a thirty (30) day written notice to the other party. In the event oftermination, DISTRICT shall compensate CITY for Services performed to the date of termination. CITY shall continue to provide Services after notice to terminate and during the thirty (30) day notice period unless DISTRICT, in the notice, requests CITY not perform Services. The notice shall be deemed given when 5

17 personally delivered to the DISTRICT or CITY representative or three (3) days after the date the notice is deposited in the United States mail, first-class postage paid, and addressed to the appropriate representative as specified in this Agreement. 7. NOTICE / REPRESENTATIVES. The CITY and DISTRICT have designated the following representatives to receive notices and act in their agency's behalfin the administrationof this Agreement. CITY ChiefofPolice Los Banos Police Department th Street Los Banos, CA DISTRICT Superintendent Los Banos Unified School District 1717 South 11 th Street Los Banos, CA ASSIGNMENT. This Agreement is personal to the CITY and DISTRICT and is not assignable without the other party's prior written consent. 9. SUCCESSORS AND ASSIGNS. This Agreement shall bind the successors and assigns ofthe parties hereto. 10. MODIFICATIONS. The terms and conditions ofthis Agreement may be modified or changed only by written mutual consent ofthe parties. 11. SEVERABILITY. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or 6

18 unenforceable, the remaining provisions of this Agreement shall continue in full force and effect. IN WIlNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date and year first above written. CITY: City oflos Banos, a municipal corporation DISTRICT: Los Banos Unified School District, a public school district By: Steve Carrigan, City Manager By: Dr. Steve Tietjen, Superintendent ATTEST: By: Lucille Mallonee, City Clerk APPROVED AS TO FORM: By: William A. Vaughn, City Attorney 7

19 rosbanos Agenda Staff Report TO: FROM: DATE: SUBJECT: Mayor &City Council Members Lucy Mallonee, MMC~ City Clerk/Administrative Services Director May 1, 2013 Fingerprinting Process for Non-Public Safety Employment Applicants TYPE OF REPORT: Consent Agenda Recommendation: Adopt the Resolutions as submitted. Background: At the November 7, 2012 City Council meeting, the City Council approved Resolution No Authorizing the City to Access Federal Level Criminal History Information for Non-Public Safety Employment Applicants. Staff forwarded City Resolution No to the California Department of Justice (DOJ) who then forwarded it to the Federal Bureau of Investigations (FBI) for review and approval. The City was notified that the FBI denied access to federal level criminal history based on wording contained in Resolution No. 5441; however, staff has been working with the FBI to ensure wording is acceptable to the FBI. In order to do this, the FBI is requesting the City adopt a new Resolution. Discussion: The FBI has stated they will not accept a Resolution amending Resolution No. 5441, therefore, staff is requesting Council rescind Resolution No and adopt a new Resolution to submit to the FBI for approval.

20 Staff would like to be more efficient in the employment background process and this Resolution would add an additional level to the City's current fingerprinting procedure for non-public safety employment applicants. This addition would allow the City to receive an FBI fingerprint check for non-public safety employment applicants. In order for the City to obtain access to federal level criminal history information for nonpublic safety employment applicants, the DOJ requires an agency Resolution be approved through the FBI. Fiscal Impact: The FBI check will require an additional $17.00 fee per live scan. Reviewed by: Gary Brizzee Acting City Manager/Chief of Police Attachments: Resolutions

21 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AUTHORIZING THE CITY TO ACCESS FEDERAL LEVEL CRIMINAL HISTORY INFORMATION FOR NON PUBLIC SAFETY EMPLOYMENT APPLICANTS WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) authorize cities, counties, districts and joint powers authorities to access state and local summary criminal history information for employment, licensing or certification purposes; and WHEREAS, Penal Code Section 11105(b)(11) authorizes cities, counties, districts and joint powers authorities to access federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation; and WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part ofthe subject ofthe record; and WHEREAS, Penal Code Sections (b)(11) and 13300(b)(11) require the city council, board of supervisors, governing body of a city, county or district or joint powers authority to specifically authorize access to summary criminal history information for employment, licensing, or certification purposes. NOW THEREFORE, BE IT RESOLVED, that the City of Los Banos is hereby authorized to access state and federal level summary criminal history information for employment (including volunteers and contract employees), licensing of (indicate positions of all prospective licensee's), or certification for (name all prospective titles applying for certification) purposes and may not disseminate the information to a private entity. The foregoing resolution was introduced at a regular meeting of the City Council of the City of Los Banos held of the 7'h day of November 2012, by Council Member Faria who moved for its adoption, which motion was duly seconded by Council Member Stonegrove, and the Resolution was adopted by the following vote: AYES: NOES: ABSENT: Council Members Faria, Silveira, Sousa, Stonegrove, Mayor Villalta None None APPROVED: ATTEST: ~'1.~ Lucille L. Mallonee, City Clerk

22 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS RESCINDING RESOLUTION NO WHEREAS, the Los Banos City Council adopted Resolution No at their November 7,2012 Regular City Council meeting; and WHEREAS, the Federal Bureau of Investigations (FBI) has reviewed Resolution No and has denied access to the City of Los Banos based on the Resolution wording; and WHEREAS, the City has been working with the FBI to obtain preferred wording of a new Resolution authorizing access to Federal Level Criminal history; and WHEREAS, the City wishes to rescind City Council Resolution No Authorizing the City to Access Federal Level Criminal History Information for Non-Public Safety Employment Applicants. NOW THEREFORE, BE IT RESOLVED, that City Council Resolution No is rescinded and is no longer applicable. The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 1 st day of May, 2013, by Council Member _ who moved its adoption, which motion was duly seconded by Council Member _ and the Resolution adopted by the following vote: AYES: NOES: ABSENT: APPROVED: ATTEST: Michael Villalta, Mayor Lucille L. Mallonee, City Clerk

23 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AUTHORIZING THE CITY TO ACCESS FEDERAL LEVEL CRIMINAL HISTORY INFORMATION FOR NON-PUBLIC SAFETY EMPLOYMENT APPLICANTS WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) authorize cities, counties, districts and joint powers authorities to access state and local summary criminal history information for employment, licensing or certification purposes; and WHEREAS, Penal Code Section (b)(11) authorizes cities, counties, districts and joint powers authorities to access federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation; and WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record; and WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require the city council, board of supervisors, governing body of a city, county or district or joint powers authority to specifically authorize access to summary criminal history information for employment, licensing, or certification purposes. NOW THEREFORE, BE IT RESOLVED, that the City of Los Banos is hereby authorized to access state and federal level summary criminal history information for employment (including volunteers and contract employees), and may not disseminate the information to a private entity. The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 1 5t day of _' 2013, by Council Member _ who moved its adoption, which motion was duly seconded by Council Member _ and the Resolution adopted by the following vote: AYES: NOES: ABSENT: ATIEST: APPROVED: Michael Villalta, Mayor Lucille L. Mallonee, City Clerk

24 LOS Banos Agenda Staff Report TO: FROM: DATE: SUBJECT: TYPE OF REPORT: Mayor & City Council Memb:?rs ~~ Rick Spalding, IT Director~ May 1, 2013 Budget Amendment Request in relation to Council Chambers audio equipment failure Consent Agenda Recommendation: That the City Council amend the Fiscal Year budget by increasing the appropriation amount in the PEG Franchise Fund ( ) for expenditures in the amount of $1, for services provided to troubleshoot and diagnose a failure in the Council Chambers audio system, and put in place a temporary repair until the failed component can be replaced. Background: The audio portion of the Council Chambers audio/video system failed toward the end of the April 3, 2013, City Council Meeting. While audio was transmitted over the speaker system inside the Council Chambers, the audio portion of the meeting was not transmitted over the Channel 96 program or the Internet feed of the program, nor was it recorded. During the Los Banos School Board Meeting on April 11, 2013, the audio portion of the meeting was not transmitted over the Channel 96 program or the Internet feed of the program, nor was it recorded for the duration of the meeting. Upon learning of this issue, IT invited a vendor to respond and troubleshoot the problem and hopefully put a temporary fix in place to restore the audio component of the Council Chambers audio/video system. Discussion: The vendor, Integrated Communications Systems from San Jose, determined that the failed audio component was due to failed equipment. The vendor has recommended replacement of the failed device, as the failed device is no longer supported or

25 maintained by the manufacturer. A temporary solution that works around the failed device was configured by the vendor. The IT Department is in the process of identifying a solution to permanently replace the failed equipment, and the procurement of this solution will be on a future Council agenda. This agenda item has been reviewed by the City Attorney. Fiscal Impact: The total cost to troubleshoot and diagnose the failed audio portion and implement a temporary solution is $1,360. This purchase does not impact the General Fund or any Enterprise Funds. All funds in the PEG Franchise Fund were provided through the Cable Services Franchise Agreement with Comcast. This purchase is consistent with the Los Banos Municipal Code, Title 3 (Finance), Chapter 10 (Purchasing System) Reviewed by: Steve Carrigan, City Manager ~(~ sonyawiiiirlls, Accounting and Budget Supervisor Attachments: Resolution Invoice from ICS for services

26 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AMENDING THE FISCAL YEAR (FY) BUDGET BY INCREASING THE APPROPRIATION AMOUNT IN THE PEG FRANCHISE FUND FOR EXPENDITURES IN THE AMOUNT OF $1, TO ADDRESS FAILED AUDIO EQUIPMENT THAT SUPPORTS THE COUNCIL CHAMBERS WHEREAS, the audio/video system in the Council Chambers supports the broadcast of the Los Banos City Council and Los Banos Unified School Board meetings within the chambers, on Channel 96, and over the Internet; and WHEREAS, a component of the audio/video system that supports the transmission of audio failed during the April 3 City Council Meeting; and WHEREAS, this loss of service was determined to be due to a failed device within the audio/video system; and WHEREAS, the cost associated with troubleshooting and diagnosing the problem, as well as implementing a temporary solution to resolve the issue, is $1,360.00; and WHEREAS, there is sufficient budget in the PEG Franchise Fund available for the replacement of failed component of the audio/video system at a cost of $1,360.00; and WHEREAS, the proposed budget amendment increase of $1, in expenditures for the 'G' channel broadcast equipment replacement has been approved by the City Council. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby increase the appropriation amount for expenditures within the PEG Franchise Fund ( ) in the amount of $1, for troubleshooting and diagnosing the problem, as well as implementing a temporary solution to resolve the issue. 1

27 The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 1st day of May 2013, by Council Member _ who moved its adoption, which motion was duly seconded by Council Member _ and the Resolution adopted by the following vote: AYES: NOES: ABSENT: APPROVED: Michael Villalta, Mayor ATTEST: Lucille L. Mallonee, City Clerk 2

28 Integrated Communication Systems 550 Parrott Street Unit 40 San Jose, CA (408) Fax (408) CUSTOMER #: COLB INVOICE #: INVOICE DATE: 04/23/13 DUE DATE: OS/23/13 Bill TO: City of los Banos 520 J Street los Banos, CA YOUR PO/REF#: OUR JOB: City of los Banos 520 J Street los Banos, CA Rick Spalding ( DESCRIPTION Audio System Service labor/travel QUANTITY PRICE AMOUNT TX?] 1, N The existing system uses an old ass Soundweb 9088 audio DSP processor. The ass 9088 is a lang discontinued DSP processor unit and has been deemedfaulty an and is no longer supported by ass. Additionally, the remote audio cantrois at the dais na longer work. The DSP was evaluated andfound to not be passing audio. NET DUE: 1,360.00

29 LOS Banos if fi 1""-,. Agenda Staff Report TO: FROM: DATE: SUBJECT: Mayor~a &Council Members Paula ~erald, AICP, Community Development Director May1,2013 Cottage Food Operations TYPE OF REPORT: Public Hearing Recommendation: City Council receive the staff report on the Cottage Food Operation (CFO) amendment to the Zoning Ordinance (Sec 9-3 of the Los Banos Municipal Code), open the public hearing, take public comment and continue the public hearing until May 15, 2013 to reintroduce Ordinance No amending Title 9, Chapter 3 of the Los Banos Municipal Code eliminating the requirement for liability insurance. Discussion: On April 1i h, an Ordinance was introduced relating to Cottage Food Operations. At the public hearing there was testimony received from the public concerning a $1,000,000 liability insurance policy as a requirement of the Cottage Food Operations Permit. Staff has researched the language of Assembly Bill 1616 (AB 1616) as it pertains to the City's limited authority relating to Cottage Food Operations. Based on the language of AB 1616, staff is concerned about the City's authority to require liability insurance through the City permitting process. It should be noted that neither the California Department of Public Health or Merced County Environmental Health, who are regulating the actual operation, are requiring liability insurance. Staff also researched insurance requirements and found that most, if not all, homeowner insurance policies would not cover a Cottage Food Operation and a liability insurance policy with a $1,000,000 limit would be approximately $471 a year.

30 The information below describes the requirement and proposed process. AB 1616 which relates to CFO's went into effect on January 1, A CFO is an enterprise at a private home where specific low-risk food products that do not require refrigeration are prepared or packaged for sale to consumers. Private homes, as defined by the State, are dwellings, including an apartment or other rented space, where the CFO operator resides. Customers may visit the residence to purchase the products and a CFO can have one full-time equivalent employee, not counting family members. Sales for a CFO may either be done as a "direct sale", which is a transaction between a CFO operator and a consumer where the food is purchased directly from the CFO or "indirect sale", which is interaction between a CFO and a third party retailer and consumer. According to AS 1616 gross sales for a CFO cannot exceed $35,000 annually in 2013, $45,000 annually in 2014 and $50,000 annually in 2015 and beyond. CFO's are permitted to produce: baked goods without cream, custard or meat fillings, such as breads, biscuits, churros, cookies, pastries and tortillas; candy, such as brittle and toffee, chocolate covered non perishable foods such as nuts, and dried fruit; dried pasta, dry baking mixes; fruit pies, fruit empanadas and fruit tamales; granola, cereals and trail mixes; herb blends and dried mole paste; honey and sweet sorghum syrup; jams, jellies, preserves and fruit butter; nut mixes and nut butters; popcorn; vinegar and mustard; roasted coffee and dried tea; waffle cones and pizzeles. CFO's must complete a food processor course, instructed or approved, by the California Department of Public Health within three months of being registered or permitted and are also required to receive approval from Merced County Environmental Health. There are sanitary regulations that are applicable and are monitored by the California Department of Public Health. Those regulations include: the packaging, preparation and handling cannot occur concurrent with other domestic activities; no infants, small children or pets may be in the home kitchen during the preparation, packaging or handling; equipment and utensils need to be clean and maintained in a good state of repair; all surfaces, equipment and utensils shall be washed, rinsed and sanitized prior to each use; food and equipment storage areas need to be maintained free of rodents and insects and smoking is prohibited in areas used for packaging, preparation, storage and handling of food items during preparation. The CFO law imposes certain responsibilities on local jurisdictions. With the new law, a city or county shall not prohibit a cottage food operation in any residential dwellings but instead, shall do one of the following: 1) classify a CFO as a permitted use of residential property for zoning purposes; 2) grant an administrative permit to use a residence as any CFO that complies with local ordinances; 3) require any CFO to apply for a use permit to use a residence for its operation. The only control the local government may have is placing reasonable requirements relating to spacing and concentration, traffic control, parking and noise control relating to the home uses.

31 For the purposes of the Los Banos Municipal Code: 1. CFO's would not be allowed as a use by right; 2. Should not be approved administratively because there are too many issues relating to compatibility and conditions that need to be in place; 3. Cannot fall into the Home Occupation category as a use by right because customers and employees are allowed; 4. Cannot fall into the use permit category for Home Occupations as there will be stock and commodity allowed on site. The new legislation is bringing about the need for an Ordinance amendment to meet State requirements. From a planning perspective, a CFO cannot be prohibited in residential zoning; the challenge is to maintain the residential character of the neighborhoods and to regulate the spacing, concentration, traffic control, parking and noise control so there is no adverse impact. The Planning Commission held two public hearings on this matter, the first on March 13 th, and the second on March 28 th Staff was given direction to proceed with an Ordinance amendment that would provide a permit option whereby criteria is in place and additional conditions relating to spacing/concentration, traffic control, parking and noise control would be put in place by the Planning Commission. The permit would run for a one year period and the Planning Commission would be the initial decision making authority; subsequent approvals would be given through the Community Development Department. The proposed Ordinance establishes a definition and purpose, a permit requirement, a permit duration, application submittal requirements, criteria that would be applicable to all CFO's, conditions that can be applied to specific CFO's and suspension/revocation terms. Applicants will utilize the standard City of Los Banos Uniform Application that is for all entitlements but the packet will also include the process, submittal requirements, established criteria and standard conditions. If modification of the standard conditions is desired, the reason will need to be clearly stated and the applicant must also explain how the use will not adversely affect the surrounding neighborhood. Fees for the CFO's will be brought to the City Council prior to adoption of the Ordinance as they are approved by Resolution. The fees will be established as a cost recovery mechanism only so the General Fund will not be subsidizing expenses for individual projects. The cost for each initial application will include: notification in the Los Banos Enterprise, public hearing notice mailers, copies, envelopes and staff time. The fee will be a one-time fee and there will be no fee for subsequent renewals. The proposed changes do not result in any direct or indirect physical impact that would lead to additional CEQA analysis.

32 Fiscal Impact: Fees for the CFO permit process will be established by the City Council by Resolution prior to the Ordinance being adopted to cover costs incurred. Reviewed by: Attachments: 1. Ordinance No amending Sections of the Zoning Code of the Los Banos Municipal Code relating to Cottage Food Operations amending Title 9, Chapter 3 2. Assembly Bill No Cottage Food Operations Frequently Asked Questions -California Dept. of Public Health 4. Cottage Food Operation Approval Process & Requirements Informational Sheet 5. Public Hearing Notice

33 ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AMENDING SECTIONS OF THE ZONING CODE OF THE LOS BANOS MUNICIPAL CODE RELATING TO COTTAGE FOOD OPERATIONS AMENDING TITLE 9, CHAPTER 3 WHEREAS, Cottage Food Operations were approved by the State of California with Assembly Bill 1616; and WHEREAS, according to Assembly Bill 1616, cities need to permit Cottage Food Operations within the residential districts; and WHEREAS, the only control the local government may have is placing reasonable requirements relating to spacing and concentration, traffic control, parking and noise control relating to the home uses; and WHEREAS, a definition for a Cottage Food Operation has been added to the Los Banos Municipal Code, the use has been added as a use that is permitted with a permit and an Article has been added related to the use; and WHEREAS, a public hearing notice was advertised in the Los Banos Enterprise on March 1, 2013 as required by the Los Banos Municipal Code and Government Code Section 65091; and WHEREAS, the Los Banos Planning Commission conducted a duly noticed public hearing on said revisions on March 27, 2013 at which time all individuals desiring to comment on the proposed ordinance were heard and recommended the City Council approve an amendment related to Cottage Food Operations; and WHEREAS, The City Council conducted a duly noticed public hearing on the Zoning Ordinance amendment for the City of Los Banos on May 1, 2013 at which time all individuals desiring to comment on the document were heard. The City Council of the City of Los Banos does ordain as follows: Section 1. Existing Section of the Los Banos Municipal Code is amended to include the definition of a Cottage Food Operation and will read as follows:

34 Sec Definitions. "Cottage Food Operation" means an enterprise at a private home where specific low-risk food products that do not require refrigeration are prepared or packaged for sale to consumers, subject to the requirements of the State of California with criteria and conditions related to spacing/concentration, parking, traffic and noise control to maintain the residential nature of the neighborhoods. Section 2. read as follows: A new Article 39 is added to be numbered and titled and to Article 39. Cottage Food Operation Section 3. A new Section is added to be numbered and titled and to read as follows: Sec Definition and purpose. The definition and purpose of Cottage Food Operation shall be as described in Section of this chapter. Section 4. A new Section is added to be numbered and titled and to read as follows: Sec Permit required. No person may operate within the City without first having in his or her possession a Cottage Food Operation permit issued by the City in accordance with this chapter. No permit granted herein shall confer any vested right to any person or business for more than the permit period. All Cottage Food Operations shall comply with the provisions of this chapter as they may be amended hereafter. The operation of a Cottage Food Operation shall be permitted in all private homes subject to the criteria and conditions as established. Section 5. A new Section is added to be numbered and titled and to read as follows: Sec Permit period. All Cottage Food Operation permits issued by the City to operate in private homes pursuant to Section shall be limited to a permit period of one calendar year. Section 6. A new Section is added to be numbered and titled and to read as follows:

35 Sec Application for permit to operate. A person desiring to run a Cottage Food Operation shall submit a written application for a permit to operate in a form acceptable to and with all supporting information required by the Community Development Department. Such application shall be accompanied by a nonrefundable, nontransferable application fee in an amount as established by resolution of the City Council. Any such permit shall be required to be renewed annually and a separate nonrefundable, nontransferable application fee shall be paid yearly for such renewal applications. The permit is to be on the premises at all times. Permits to operate are nontransferable. (a) Every Cottage Food Operation shall obtain a City of Los Banos Business License. (b) As part of the permit to operate application, the applicant shall provide the following: (1) All items as required on the Los Banos Uniform Application. (2) Two (2) pictures of the front exterior of the home, showing the driveway and off street parking locations. (3) Two (2) pictures of the home kitchen, preparation and storage area for the Cottage Food Operation. (4) A site plan, including sufficient parking for the employee and customers. (5) Documents issued by an insurance company authorized to do business in the State of California evidencing that the Cottage Food Operator is insured under a liability insurance policy providing minimum coverage of One Million and No/100ths ($1,000,000) Dollars for injury or death arising due to the Cottage Food Operation. (c) The following may constitute grounds for denial of a permit to operate or a renewal application: (1) The proposed Cottage Food Operation does not comply with all applicable laws including, but not limited to, the applicable building, zoning, housing, fire, safety and health regulations; (2) The applicant has knowingly made a material misstatement in the application for a permit to operate; (3) Failure to obtain registration from Merced County Environmental Health; (4) Failure to complete California Department of Public Health (CDPH) approved food processing course; (5) Failure to submit copy of Merced County Environmental Health permit registration to the Community Development Department; (6) Violation of criteria or conditions from previous Cottage Food Operation permit. (d) The Planning Commission shall be the decision making authority for any initial application of a permit to operate. The Community Development Director or designee shall be the decision making authority for any renewal application of a permit to operate.

36 Section 7. A new Section is added to be numbered and titled and to read as follows: Sec Criteria. The following criteria shall apply to cottage food operations in addition to other conditions of approval as may be added through the permit process: (a) Each Cottage Food Operation shall conform to all State and County laws, regulations and requirements. (b) Foods allowed for the Cottage Food Operation must be in accordance with those listed as "approved" foods by the California Department of Public Health (CDPH). (c) The operator of a Cottage Food Operation shall reside within the residential unit used for such activity as their primary residence. (d) No more than twenty-five (25) percent of the private dwelling may be utilized for the Cottage Food Operation. (e) Only the home kitchen, meaning that which is primarily intended for use by the residents of a home may be utilized for preparation of Cottage Food Operations. (f) No physical conversions or alterations to the residential nature and character of the residential unit where a Cottage Food Operation is being conducted shall be allowed in conjunction with the Cottage Food Operation. (g) No portion of any building other than the primary residence may be utilized for any aspect of the Cottage Food Operation. (h) No Cottage Food Operation shall be located within 300 feet of another such operation. (i) All Cottage Food Operations shall conform to the requirements and restrictions of the Los Banos Municipal Code Noise Control. U) Only those individuals residing within the residential unit, as their primary residence, shall participate in a Cottage Food Operation, except for a full-time equivalent employee. (k) Customers of any Cottage Food Operation shall be prohibited from consuming any products purchased from the Cottage Food Operation on the property where such product was produced. (I) Where a Cottage Food Operation is conducted from a residential unit within a multi-family residential complex, the operator of the Cottage Food Operation shall police, clean and maintain the property with regard to discarded items that may result from the Cottage Food Operation. (m)violations of criteria and conditions of a Cottage Food Operation shall result in the revocation of the Business License and permit issued by the City of Los Banos. (n) No signage or advertising on the site is allowed. (0) Gross sales cannot exceed those limits as established by the State of California. (p) All persons who prepare or package cottage food products

37 shall complete a food processor course instructed by the California Department of Public Health within the next three (3) months. (Copies of each certificate issued are to be submitted to the Community Development Department within three months of permit issuance.) Section 8. A new Section is added to be numbered and titled and to read as follows: Sec Conditions. In addition to the criteria established in Section , the Planning Commission may add conditions of approval related to spacing/concentration, parking, traffic control and noise control with the initial permit to operate. The conditions of approval established by the Planning Commission will be a requirement on all subsequent renewals and can only be modified by the Planning Commission after a public hearing. Section 9. A new Section is added to be numbered and titled and to read as follows: Sec Suspension/revocation of permit to operate. (a) Violation and Noncompliance. The Community Development Director or designee may refuse to renew a permit or may revoke or suspend an existing permit on the grounds that the permit holder has failed to comply with the permit conditions or other requirements of this chapter. If a suspended permit lapses during the suspension period, a new application must be filed at the end of the suspension period. In any such case, the permit holder shall have the right to appeal in the time and manner set forth in this section. (b) Revocation and Suspension of Permit to Operate when the City concludes that grounds for denial, suspension, revocation or refusal to renew a permit to operate exist, he or she shall serve the applicant or permit holder, personally or by certified mail, with a notice of denial or notice of intent to suspend, revoke or refuse to renew permit. This notice shall state: (1) The reasons for the proposed action; (2) The effective date of the decision; (3) The right of the applicant or permit holder to a hearing; and (4) That the decision will be final if no hearing request is filed within five (5) business days. (c) Hearings and Appeals. Hearing and appeals of the decision of the Community Development Director or designee or the Planning Commission shall be conducted in the same manner provided by Sections through

38 Section 10. This Ordinance shall go into effect and be in full force and operation thirty (30) days after its final passage and adoption. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted and published once within fifteen days after passage and adoption as may be required by law; or, in the alternative the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the Office of the City Clerk five days prior to the date of adoption of this Ordinance; and, within fifteen days after adoption, the City Clerk shall cause to be published, the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk. Introduced by Council Member Stonegrove and seconded by Council Member Silveira on the 17th day of April, Passed on the 1st day of May, 2013 by the following vote: AYES: NOES: ABSENT: APPROVED: ATTEST: Michael Villalta, Mayor Lucille L. Mallonee, City Clerk

39 Bill Text AB-1616 Food safety: CObge rood opetltions. 4/8/13 7:49 AM AB-1616 Food safety: cottage food operations. ( ) Assembly Bill No CHAPTER 415 An act to add Chapter 6.1 (commencing with Section 51035) to Part 1 of Division 1 of Title 5 of the Government Code, and to amend Sections , , ,111955, ,113851,114021,114023, , , and of, to add Sections and to, and to add Chapter 11.5 (commencing with Section ) to Part 7 of Division 104 of, the Health and Safety Code, relating to food safety. [ Approved by Governor September 21, Filed Secretary of State September 21, AB 1616, Gatto. Food safety: cottage food operations. LEGISLATIVE COUNSEL'S DIGEST Existing law, the Shennan Food, Drug, and Cosmetic Law (Shennan Law), requires the State Department of Public Health to regulate the manufacture, sale, labeling, and advertising activ~ies related to food, drugs, devices, and cosmetics in confonnlty w~h the Federal Food, Drug, and Cosmetic Act. The Shennan Law makes it unlawful to manufacture, sell, deliver, hold, or offer for sale any food that is misbranded. Food is misbranded If its labeling does not confonn to specified federal labeling requirements regarding nutrition, nutrient content or health claims, and food allergens. Violation of this law is a misdemeanor. The existing California Retail Food Code provides for the regulation of health and sanitation standards for retail food facilities, as defined, by the State Department of Public Health. Under existing law, local health agencies are primarily responsible for enforcing the California Retail Food Code. That law exempts private homes from the defin~ion of a food facility, and prohibits food stored or prepared in a private home from being used or offered for sale in a food facility. That law also requires food that is offered for human consumption to be honestly presented, as specified. A violation ofthese provisions is a misdemeanor. This bill would Include a cottage food operation, as defined, that is registered or has a pennlt within the private home exemption of the California RetaH Food Code. The bill would also exclude a cottage food operation from specified food processing establishment and Shennan Law requirements. This bill would require a cottage food operation to meet specified requirements relating to training, sanitation, preparation, labeling, and pennissible types of sales and would subject a cottage food operation to inspections under specified circumstances. The bill would require a food facility that serves a cottage food product without packaging or labeling to identify it as homemade. The bill would estabrlsh various zoning and permit requirements relating to cottage food operations. This bill would Incorporate additional changes in Section of the Health and Safety Code, proposed by AB 2297, to be operative only if AB 2297 and this bill are both chaptered and become effective January 1,

40 Bill T~ AB 1616 Food Sllfety: mtt:age food operjtlons. 4/8/137:<19 P. 2013, and this blu Is chaptered last. By imposing duties on local officials and adding new crimes, this biil would create a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement Is required by this act for a specified reaso n. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OFlliE STAlE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares ail of the foilowing: (a) Sma" businesses have played an important role in helping slow economies recover and prosper as an engine of job creation. During the 1990s, small businesses created the majority of new jobs and now account for 65 percent of United States employment. (b) California, and the United States as a whole, are facing growing obesity and obesity-related disease epidemics. (1) Two-thirds of American adults and neariy one-third of children and teens are obese or overweight, placing them at risk for developing chronic diseases such as diabetes, heart disease, and cancer. (2) One in every nine Califomia children, one in three teens, and over half of adults are already overweight or obese. This epidemic affects Virtually all Califomians. (3) These health conditions are preventable and curable through lifestyle choices that include consumption of healthy fresh foods. (c) For decades, low-income and rural communities have faced limited opportunities to purchase healthy foods. Often, without cars or convenient public transportation options, low-income residents in these areas must rely for much of their shopping on expensive, fatty, processed foods sold at convenience and comer stores. (d) There is a growing movement in California to support community-based food production, sometimes referred to as cottage food," artisanal food," slow food," Iocaily based food," or urban agriculture" movements. These movements seek to connect food to local communities, smail businesses, and environmentai sustainabillty. (e) Increased opportunities for entrepreneur development through microenterprises can help to supplement household incomes, prevent poverty and hunger, and strengthen local economies. (f) At ieast 32 other states have passed laws that ailow smail business entrepreneurs to use their home kitchens to prepare, for sale, foods that are not potentially hazardous. (g) Even some bake sales are currently iilegal in California. (h) It is the intent of the Legislature to enact a homemade food act specifically designed to help address these chailenges and opportunities. SEC. 2. Chapter 6.1 (commencing with Section 51035) is added to Part 1 of Division 1 of TJl:1e 5 of the Government Code, to read: CHAPTER 6.1. Cottage Food Operations hl:tll:/lleninfo.~.g.aovifaceslbiiin;'iiclienljdtmi?billld_ da81616 P;,oe2ofl

41 eill Tl!) Ae 1616 Food safety: IDDttage food operations. 4/8/13 7:49 AM (a) A city, county, or city and county shall not prohibit a cottage food operation, as defined in Section ofthe Health and Safety Code, in any residential dwelfings, but shall do one ofthe following: (1) Classify a cottage food operation as a permitted use of residential property for zoning purposes. (2) Grant a nondiscretionary permit to use a residence as any cottage food operation that complies with local ordinances prescribing reasonable standards, restrictions, and requirements concemlng spacing and concentration, traffic control, parking, and noise control relating to those homes. Any noise standards shall be consistent with local noise ordinances implementing the noise element of the general plan. The permit issued pursuant to this paragraph shall be granted by the zoning administrator, or if there is no zoning administrator, by the person or persons designated by the planning agency to grant these permits, upon the certification without a hearing. (3) ReqUire any cottage food operation to apply for a permit to use a residence for its operation. The zoning administrator, or If there is no zoning administrator, the person or persons designated by the planning agency to handle the use permits, shall review and decide the approcations. The use permit shall be granted if the cottage food operation complies with local ordinances, If any, prescribing reasonable standards, restrictions, and requirements conceming the fohowlng factors: spacing and concentration, traffic control, parking, and noise control relating to those homes. Any noise standards shall be consistent with local noise ordinances implementing the noise element of the general plan. The local govemment shah process any required permit as economically as possible. Fees charged for review shall not exceed the costs of the review and permit process. An applicant may request a verification of fees, and the city, county, or city and county shall provide the approcant with a written breakdown within 45 days of the request. The application form for cottage food operation permits shall Include a statement ofthe applicant s right to request the written fee verification. (b) In connection with any action taken pursuant to paragraph (2) or (3) of subdivision (a), a city, county, or city and county shah do all ofthe fohowlng: (1) Upon the request of an applicant, provide a list of the permits and fees that are required by the city, county, or city and county, including information about other permits that may be required by other departments in the city, county, or city and county, or by other public agencies. The city, county, or city and county shall, upon request of any applicant, also provide information about the anticipated length of time for reviewing and processing the permit application. (2) Upon the request of an applicant, provide Information on the breakdown of any Individual fees charged In connection with the issuance of the permit. (3) If a deposit Is required to cover the cost of the permit, provide Information to the applicant about the estimated final cost to the approcant of the permit, and procedures for receiving a refund from the portion of the deposit not used. (c) Use of a residence for the purposes of a cottage food operation shah not constitute a change of occupancy for purposes of the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code), or for purposes of local building and fire codes. (d) Cottage food operations shah be considered residences for the purposes of the State Uniform Building Standards Code and local building and fire codes. SEC. 3. Section of the Health and Safety Code is amended to read: Food processing facility" means any facility operated for the purposes of manufacturing, packing, or holding processed food. Food processing facility does not include a food facility as defined In Section , a cottage food operation that Is registered or has a permit pursuant to Section , or any facility exclusively storing, handftng, or processing dried beans. SEC. 4. Section of the Health and Safety Code Is amended to read: The Food Safety Fund is hereby created as a special fund in the State Treasury. Ali moneys collected by the department under subdivision (c) of Section and Sections , , , ,

42 Bill Telit ~ AB 1616 Food safety: mttage rood operations. 418/13 ]:49 A , , and , and under Article 7 (commencing with section ) of Chapter 5 shall be deposited in the fund, for use by the department, upon appropriation by the legislature, for the purposes of providing funds necessary to carry out and implement the inspection provisions of this part relating to food, licensing, inspection, enforcement, and other provisions of Article 12 (commencing with Section ) relating to water, the provisions relating to education and training in the prevention of microbial contamination pursuant to Section , and the registration provisions of Article 7 (commencing with Section ) of Chapter 5, and to carry out and implement the provisions of the Califomla Retail Food Code (Part 7 (commencing with Section ) of Division 104). SEC. 5. Section of the Health and Safety Code is amended to read: No person shall engage in the manufacture, packing, or holding of any processed food in this state unless the person has a vard registration from the department, except those engaged exclusively in the storing, handling, or processing of dried beans. The registration shali be valid for one calendar year from the date of issue, unless it is revoked. The registration shall not be transferable. This section shall not apply to a cottage food operation that is registered or has a permit pursuant to Section SEC. 6. Section of the Health and Safety Code is amended to read: Food processing estabrlshment; as used in this chapter, shall mean any room, building, or place or portion thereof, maintained, used, or operated for the purpose of commercially storing, packaging, making, cooking, mixing, processing, bottling, canning, packing, slaughtering, or otherwise preparing or handling food except restaurants. Food processing establishment" shall not include a cottage food operation that is registered or has a permit pursuant to Section SEC. 7. Section Is added to the Health and Safety Code, to read: (a) Cottage food operation" means an enterprise that has not more than the amount In gross annual sales that is specified in this subdivision, is operated by a cottage food operator, and has not more than one fulhlme equivalent cottage food employee, not Including a family member or household member of the cottage food operator, within the registered or permitted area of a private home where the cottage food operator resides and where cottage food products are prepared or packaged for direct, indirect, or direct and indirect sale to consumers pursuant to this part. In 2013, the enterprise shall not have more than thirty-five thousand dollar ($35,000) in gross annual sales In the calendar year. In 2014, the enterprise shall not have more than forty-five thousand dollars ($45,000) In gross annual sales in the calendar year. Commencing in 2015, and each subsequent year thereafter, the enterprise shall not have more than fifty thousand dollars ($50,000) in gross annual sales in the calendar year. A cottage food operation Includes both of the following: (1) A Class A" cottage food operation, which is a cottage food operation that may engage only in direct sales of cottage food products from the cottage food operation or other direct sales venues described in paragraph (4) of subdivision (b). (2) A Class B" cottage food operation, which is a cottage food operation that may engage in both direct sales and indirect sales of cottage food products from the cottage food operation, from direct sales venues described in paragraph (4) of subdivision (b), from offsite events, or from a third-party retail food facility described In paragraph (5) of subdivision (b). (b) For purposes of this section, the following definitions shall apply: (1) Cottage food employee" means an individual, paid or volunteer, who is involved In the preparation, packaging, handling, and storage of a cottage food product, or otherwise works for the cottage food operation. An employee does not include an immediate family member or household member of the cottage food operator. (2) Cottage food operator" means an Individual who operates a cottage food operation in his or her private home and Is the owner of the cottage food operation. hltd:flleolnfo.legislature.ca.oovif3ceslbillnavclient.lchtml1biu 1d B1616 Paae40fl

43 Bil Text AB-1616 Food safety: lxittage: rood Cpetlltb!Js. 4/8f13 7:49 AM (3) cottage food products" means nonpotentlally hazardous foods, including foods that are described in Section and that are prepared for sale in the kitchen of a cottage food operation. (4) Direct sale" means a transaction between a cottage food operation operator and a consumer, where the consumer purchases the cottage food product directly from the cottage food operation. Direct sales include, but are not iimited to, transactions at holiday bazaars or other temporary events, such as bake sales or food swaps, transactions at farm stands, certified farmers markets, or through community-supported agriculture subscriptions, and transactions occurring in person in the cottage food operation. (5) Indirect sale" means an interaction between a cottage food operation, a third-party retaker, and a consumer, where the consumer purchases cottage food products made by the cottage food operation from a third-party retailer that holds a vard permit issued pursuant to Section Indirect sales include, but are not limited to, sales made to retail shops or to retail food facirlties where food may be immediately consumed on the premises. (6) Private home" means a dwelung, including an apartment or other leased space, where individuals reside. (7) Registered or permitted area" means the portion of a private home that contains the private home s kitchen used for the preparation, packaging, storage, or handfing of cottage food products and related ingredients or equipment, or both, and attached rooms within the home that are used exclusively for storage. SEC. 8. Section of the Health and Safety Code is amended to read: (a) Food facility" means an operation that stores, prepares, packages, serves, vends, or otherwise provides food for human consumption at the retail level, including, but not limited to, the following: (1) An operation where food is consumed on or off the premises, regardless of whether there is a charge for the food. (2) Any place used in conjunction with the operations described in this subdivision, including, but not limited to, storage facilities for food-related utensils, equipment, and materials. (b) Food facifity" includes permanent and nonpermanent food facilities, including, but not limited to, the following: (1) Public and private school cafeterias. (2) Restricted food service facilities. (3) Licensed health care facilities. (4) Commissaries. (5) Mobile food fachities. (6) Mobile support units. (7) Temporary food facilities. (8) Vending machines. (9) Certified farmers markets, for purposes of permitting and enforcement pursuant to Section (10) Farm stands, for purposes of permitting and enforcement pursuant to Section (c) Food facility" does not include any of the following: (1) A cooperative arrangement wherein no permanent facilities are used for storing or handling food. (2) A private home, including a cottage food operation that is registered or has a permit pursuant to Section (3) A church, private club, or other nonprofit association that gives or sells food to its members and guests,

44 SUI TeJ AS'1616 Food safety: lxiti:age food opet1itions. 41M3 7:49" and not to the general public, at an event that occurs not more than three days in any 90-day period. (4) A for-profit entity that gives or sells food at an event that occurs not more than three days In a 90-day period for the benefit of a nonprofit association, if the for-profit entity receives no monetary benefit, other than that resulting from recognition from participating in an event. (5) Premises set aside for wine tasting, as that term is used in Section of the Business and Professions Code and in the regulations adopted pursuant to that section, that comply with Section , regardless of whether there is a charge for the wine tasting, if no other beverage, except for bottles of wine and prepackaged nonpotentially hazardous beverages, is offered for sale for onsite consumption and no food, except for crackers, is served. (6) Premises operated by a producer, seiling or offering for sale only whole produce grown by the producer, or sheil eggs, or both, provided the sales are conducted on premises controiled by the producer. (7) A commercial food processing plant as defined In section (8) A child day care facility, as defined in section (9) A community care facility, as defred in Section (10) A residential care facility for the elderly, as defined in Section (11) A residentiai care facility for the chronically ill, which has the same meaning as a residential care facility, as defined in Section (12) Premises set aside by a beer manufacturer, as defmed in Section of the Business and Professions Code, that comply with Section , for the purposes of beer tasting, regardless of whether there Is a charge for the beer tasting, if no other beverage, except for beer and prepackaged nonpotentially hazardous beverages, is offered for sale for onsite consumption, and no food, except for crackers or pretzels, is served. SEC Section of the Health and Safety Code is amended to read: (a) Food facility" means an operation that stores, prepares, packages, serves, vends, or otherwise provides food for human consumption at the retail level, including, but not limited to, the following: (1) An operation where food is consumed on or off the premises, regardless of whether there is a charge for the food. (2) Any piace used in conjunction with the operations described in this subdivision, including, but not limited to, storage facilities for food-reiated utensils, equipment, and materials. (b) Food facility" includes permanent and nonpermanent food facilities, including, but not limited to, the following: (1) Public and private school cafeterias. (2) Restricted food service facilities. (3) Ucensed health care facilities, except as provided in paragraph (13) of subdivision (c). (4) Commissaries. (5) Mobile food facilities. (6) Mobile support units. (7) Temporary food facilities. (8) Vending machines. (9) Certified farmers markets, for purposes of permitting and enforcement pursuant to Section hltd:llleclnm.leols0ture.c!i.qoviftlceslbillnavc IienllChlml7bl1l ld_ ab1616 Page60fl

45 Bill Text AB 1616 Food safely: O)ttilge toad operations. 4/8/13 7:49 AM (10) Fann stands, for purposes of pennitting and enforcement pursuant to Section (c) Food facility" does not Include any of the following; (1) A cooperative arrangement wherein no pennanent facilities are used for storing or handling food. (2) A private home, Including a cottage food operation that is registered or has a pennlt pursuant to Section (3) A church, private club, or other nonprofit association that gives or sells food to Its members and guests, and not to the general pubfic, at an event that occurs not more than three days In any 90-day period. (4) A for-profit entity that gives or sells food at an event that occurs not more than three days in a 90-day period for the benefit of a nonprofit association, if the for-profit entity receives no monetary benefit, other than that resulting from recognition from participating in an event. (5) Premises set aside for wine tasting, as that tenn Is used in Section of the Business and Professions Code and in the regulations adopted pursuant to that section, that comply with Section , regardless of whether there Is a charge for the wine tasting, if no other beverage, except for bottles of wine and prepackaged nonpotentially hazardous beverages, Is offered for sale for onslte consumption and no food, except for crackers, Is served. (6) Premises operated by a producer, selfing or offering for sale only whole produce grown by the producer, or shell eggs, or both, provided the sales are conducted on premises controlled by the producer. (7) A commercial food processing plant as defined in section (8) A child day care faculty, as defined in Section (9) A community care facility, as defined In Section (10) A residential care facility for the elderiy, as defined in Section (11) A residential care facifity for the chronically ill, which has the same meaning as a residential care facility, as defined in Section (12) Premises set aside by a beer manufacturer, as defmed in Section of the Business and Professions Code, that comply with Section , for the purposes of beer tasting, regardless of whether there is a charge for the beer tasting, if no other beverage, except for beer and prepackaged nonpotentially hazardous beverages, Is offered for sale for onslte consumption, and no food, except for crackers or pretzels, Is served. (13) (A) An Intennediate care facility for the developmentally disabled, as defined in subdivisions (e), (h), and (m) of Section 1250, with a capacity ofsix beds orfewer. (B) A facifity described in subparagraph (A) shall report any foodbome Illness or outbreak to the local health department and to the State Department of Public Health within 24 hours of the illness or outbreak. SEC. 9. Section of the Health and Safety Code Is amended to read: (a) Penn It" means the document issued by the enforcement agency that authorizes a person to operate a food facirlty or cottage food operation. (b) Registration" shall have the same meaning as pennit for purposes of implementation and enforcement of this part. SEC. 10. Section of the Health and Safety Code is amended to read: (a) Food shall be obtained from sources that comply with all applicable laws. (b) Food stored or prepared in a private home shall not be used or offered for sale in a food facuity, unless that

46 Bil Text -AB-1616 Food safety: r:otli!ge food opel1ltlons. 4/8/13 1:451 A food is prepared by a cottage food operation that is registered or has a permit pursuant to Section SEC. 11. Section of the Health and Safety Code is amended to read: Food in a hermetically sealed container shail be obtained from a food processing plant that is regulated by the food regulatory agency that has jurisdiction over the plant, or from a cottage food operation that produces jams, jeilies, and preserves and that is registered or has a permit pursuant to Section SEC. 12. Section is added to the Health and Safety Code, to read: A cottage food product, as defined in Section , that is served by a food facility without packaging or labeling, as described in Section , shail be identified to the consumer as homemade on the menu, menu board, or other location that would reasonably inform a consumerof its homemade status. SEC. 13. Chapter 11.5 (commencing with Section ) is added to Part 7 of Division 104 of the Health and Safety Code, to read: CHAPTER Cottage Food Operations (a) (1) (A) A Class A" cottage food operation shail not be open for business unless it is registered with the local enforcement agency and has submitted a completed, self-certification checkfist approved by the local enforcement agency. The self-certification checklist shail verify that the cottage food operation conforms to this chapter, including the foilowlng requirements: (i) No cottage food preparation, packaging, or handling may occur in the home kitchen concurrent with any other domestic activities, such as family meal preparation, dishwashing, clothes washing or ironing, kitchen cleaning, or guest entertainment. (ii) No Infants, smail children, or pets may be in the home kitchen during the preparation, packaging, or handling of any cottage food products. (iii) Kitchen equipment and utensils used to produce cottage food products shail be clean and maintained in a good state of repair. (iv) Ail food contact surfaces, equipment, and utensils used for the preparation, packaging, or handling of any cottage food productsshail be washed, rinsed, and sanitized before each use. (v) Ail food preparation and food and equipment storage areas shail be maintained free of rodents and insects. (vi) Smoking shail be prohibited In the portion of a private home used for the preparation, packaging, storage, or handling of cottage food products and related ingredients or equipment, or both, while cottage food products are being prepared, packaged, stored, or handled. (6) (i) The department shail post the requirements described in subparagraph (A) on its Intemet Web site. (i1) The local enforcement agency shaillssue a registration number to a meets the requirements of subparagraph (A). Class A" cottage food operation that (C) (I) Except as provided in (ii), a Inspections. Class A" cottage food operation shail not be subject to initial or routine (i1) For purposes of determining compliance with this chapter, a representative of a local enforcement agency may access, for inspection purposes, the registered area of a private home where a cottage food operation is located only if the representative has, on the basis of a consumer complaint, reason to suspect that adultered or otherwise unsafe food has been produced by the cottage food operation or that the cottage food operation has violated this chapter. (iii) Access under this subparagraph is limited to the registered area and solely for the purpose of enforcing Or administering this chapter. hi:to:f/lelltnfo.lecl1slaturu:a.oovhlr(l!slbiunavclienllr:hlm1?bi11 id_20u20i2lla.shi16 PCltleBofl

47 Bill Te) AB-1616 Food safety: aittilge food ope~. 4/8/137:49AM (iv) A local enforcement agency may seek recovery from a Class A" cottage food operation of an amount that does not exceed the local enforcement agency s reasonable costs of inspecting the Class A" cottage food operation for compliance with this chapter, if the Class A" cottage food operation is found to be In violation of this chapter. (2) (A) A Class B" cottage food operation shall not be open for business unless It obtains a permit from the local enforcement agency in a manner approved by the local enforcement agency to engage In the direct and indirect sale of cottage food products. (B) (/) A Class B" cottage food operation shall comply with the requirements described in clauses (i) to (vi), inclusive, of subparagraph (A) of paragraph (1) in add"ltion to the other requirements ofthis chapter. O/) The local enforcement agency shall issue a permit number after an initial inspection has determined that the proposed Class B" cottage food operation and Its method of operation conform to this chapter. (C) Except as provided in this subparagraph, a Class B" cottage food operation shall not be subject to more than one inspection per year by the local enforcement agency. (i) For purposes of determining compliance with this chapter, a representative of a local enforcement agency, for inspection purposes, may access the permitted area of a private home where a cottage food operation is located only if the representative has, on the basis of a consumer complaint, reason to suspect that adulterated or otherwise unsafe food has been produced by the cottage food operation, or that the cottage food operation has violated this chapter. (Ii) Access under this subparagraph is limited to the permitted area and solely for the purpose of enforcing or administering this chapter. (D) (I) A Class B" cottage food operation shall be authorized to engage in the indirect sales of cottage food products within the county in which the Class B" cottage food operation is permitted. (Ii) A county may agree to allow a Class B" cottage food operation permitted in another county to engage in the indirect sales of cottage food products in the county. (b) A registration or permit, once issued, is nontransferable. A registration or permit shall be valid only for the person, location, type of food sales, and distribution activity specified by that registration or permit, and, unless suspended or revoked for cause, for the time period indicated A cottage food operation that is registered or has a permit issued pursuant to Section shall be considered a restricted food service faciflty for purposes of, and subject to, sections , , , and A cottage food operation that is registered or has a permit also shall be subject to Sections , , , , , , , , and , and to all of the following requirements: (a) A person with a contagious illness shall refrain from work in the registered or permitted area of the cottage food operation. (b) A person involved in the preparation or packaging of cottage food products shall keep his or her hands and exposed portions of his or her arms clean and shall wash his or her hands before any food preparation or packaging activity in a cottage food operation. (c) Water used during the preparation of cottage food products shall meet the potable drinking water standards described in Section , except that a cottage food operation shall not be required to have an indirect sewer connection. Water used during the preparation of cottage food products includes all of the following: (1) The washing, sanitizing, and drying of any equipment used in the preparation of a cottage food product. (2) The washing, sanitizing, and drying of hands and arms. (3) Water used as an ingredient.

48 4Jafl3 7:49" (d) A person who prepares or packages cottage food products shall complete a food processor course instructed by the department to protect the public health within three months of becoming registered. The course shall not exceed four hours in length. The department shall work with the local enforcement agency to ensure that cottage food operators are properly notified of the location, date, and time of the classes offered. (e) A cottage food operation shall properly label au cottage food products in compliance with the Federel Food, Drug, and Cosmetic Act (21 U.S.C. sec. 343 et seq.). Additionally, to the extent permitted by federal law, the label shall include, but is not limited to, all of the following: (1) The words Made in a Home Kitchen" in 12-point type on the cottage food product s primary display panel. (2) The name commonly used for the food product or an adequately descriptive name. (3) The name of the cottage food operation which produced the cottage food product. (4) The registration or permit number of the Class A" or Class B" cottage food operation, respectively, which produced the cottage food product and, in the case of a Class B" cottage food operation, the name of the county ofthe local enforcement agency that issued the permit number. (5) The Ingredients of the cottage food product, in descending order of predominance by weight, if the product contains two or more Ingredients (a) The department shall adopt and post on Its Internet Web site a list of not potentially hazardous foods and their ethnic variations that are approved for sale by a cottage food operation. A cottage food product shall not be potentially hazardous food, as defined in Section (b) This list of nonpotentially hazardous foods shall include, but not be limited to, all of the following: (1) Baked goods without cream, custard, or meat fillings, such as breads, biscuits, chunros, cookies, pastries, and tortrlas. (2) Candy, such as brittle and toffee. (3) Chocolate-covered nonperishable foods, such as nuts and dried fruit. (4) Dried fruit. (5) Dried pasta. (6) Dry baking mixes. (7) Fruit pies, fruit empanadas, and fruit tamales. (8) Granola, cereals, and trail mixes. (9) Herb blends and dried mole paste. (10) Honey and sweet sorghum syrup. (11) Jams, jellies, preserves, and fruit butter that comply with the standard described in Part 150 of Title 21 of the Code of Federal Regulations. (12) Nut mixes and nut butters. (13) Popcorn. (14) Vinegar and mustard. (15) Roasted coffee and dried tea. (16) Waffle cones and pizelles. (c) (1) The State Public Health OffICer may add or delete food products to or from the list descnbed in subdivision (b), which shall be known as the approved food products list. Notice of any change to the approved httd:r/leoinfo.leolslatu<1!.ta.oovifareslbiunlive lient.ilt1tmji'biu id ab1616 Paoe loaf 1;

49 Bill let AIH616 Food safely: Cl:Jlttage food openlions. 4/8/137;<19 AM food products list shall be posted on the departments cottage food program Internet Web site, to also be known as the program Internet Web site for purposes of this chapter. Any change to the approved food products list shall become effective 30 days alter the notice is posted. The notice shall state the reason for the change, the authority for the change, and the nature of the change. The notice will provide an opportunity for written comment by indicating the address to which to submit the comment and the deadline by which the comment is required to be received by the department. The address to which the comment is to be submitted may be an electronic site. The notice shall allow at least 20 calendar days for comments to be submitted. The department shall consider all comments submitted before the due date. The department may withdraw the proposed change at any time by notification on the program Internet Web site orthrough notification by other electronic means. The approved food products list described In subdivision (b), and any updates to the list, shall not be subject to the administrative rulemaking requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 oftitle 2 of the Govemment Code. (2) The State PubDc Health Officer shall not remove any items from the approved food products list unless the State Public Health Officer also posts information on the program Intemet Web site explaining the basis upon which the removed food Item has been determined to be potentially hazardous (a) The State Public Health Officer shall provide technical assistance, and develop, maintain, and derner commodity-specific training related to the safe processing and packaging of cottage food products to local enforcement agencies. (b) Local enforcement agencies may couect a surcharge fee in addition to any pennlt fees collected for Class B U cottage food operations. The surcharge fee shall not exceed the reasonable costs that the department Incurs through the administration of the training described in subdivision (a) to protect the public health. The surcharge fees collected shau be transmitted to the department in a manner established by the department to be deposited In the Food Safety Fund. The department shall use the surcharge fees only to develop and deliver the training described in subdivision (a) to local enforcement agency personnel on an ongoing basis. SEC. 14. Section of the Health and Safety Code is amended to read: (a) Enforcement officers shall enforce this part and all regulations adopted pursuant to this part. (b) (1) For purposes of enforcement, any authorized enforcement officer may, during the facillty s hours of operation and other reasonable times, enter, inspect, issue citations to, and secure any sample, photographs, or other evidence from a food facirlty, cottage food operation, or any facility suspected of being a food facility or cottage food operation, or a vehicle transporting food to or from a retail food facillty, when the vehicle is stationary at an agricultural Inspection station, a border crossing, or at any food facility under the jurisdiction of the enforcement agency, or upon the request of an Incident commander. (2) If a food facility Is operating under an HACCP plan, the enforcement officer may, for the purpose of determining compliance with the plan, secure as evidence any documents, or copies of documents, relating to the facility s adherence to the HACCP plan. Inspection may, for the purpose of detennlning compliance with this part, include any record, file, paper, process, HACCP plan, invoice, or receipt bearing on whether food, equipment, or utensils are in violation of this part. (c) Notwithstanding subdivision (a), an employee may refuse entry to an enforcement officer who Is unable to present official identification showing the enforcement officers picture and enforcement agency name. In the absence of the identification card, a business card showing the enforcement agencys name plus a picture IdentifICation card such as a drivers Dcense shall meet this requirement. (d) It is a violation of this part for any person to refuse to permit entry or inspection, the taking of samples or other evidence, access to copy any record as authorized by this part, to conceal any samples or evidence, withhold evidence concerning them, or Interfere with the perfonnance of the duties of an enforcement officer, including making verbal or physical threats or sexual or discriminatory harassment. (e) A written report of the inspection shall be made and a copy shall be supplied or mailed to the owner, manager, or operator of the food facility.

50 4/8/13 7:49 A SEC. 15. Section of the Health and Safety Code is amended to read: (a) A permit may be suspended or revoked by a local enforcement officer for a violation of this part. Any food facility or cottage food operation for which the permit has been suspended shall close and remain closed until the permit has been reinstated. Any food facility or cottage food operation for which the permit has been revoked shall close and remain closed until a new permit has been issued. (b) Whenever a local enforcement officer finds that a food facility or cottage food operation is not in compliance with the requirements of this part, a written notice to comply shall be issued to the permitholder. Jf the permitholder falls to comply, the local enforcement officer shall issue to the permitholder a notice setting forth the acts or omissions with which the permitholder is charged, and Informing him or her of a right to a hearing, if requested, to show cause why the permit should not be suspended or revoked. A written request for a hearing shall be made by the permitholder within 15 calendar days after receipt of the notice. A failure to request a hearing within 15 calendar days after receipt ofthe notice shall be deemed a waiver ofthe right to a hearing. When circumstances warrant, the hearing officer may order a hearing at any reasonable time within this 15~day period to expedite the permit suspension or revocation process. (c) The hearing shall be held within 15 calendar days of the receipt of a request for a hearing. Upon written request of the permitholder, the hearing officer may postpone any hearing date, if circumstances warrant the action. SEC. 16. Section of the Health and Safety Code is amended to read: (a) Jf any imminent health hazard Is found, unless the hazard is immediately corrected, an enforcement officer may temporarily suspend the permit and order the food facility or cottage food operation immediately closed. (b) Whenever a permit is suspended as the result of an Imminent health hazard, the enforcement officer shall issue to the permitholder a notice setting forth the acts or omissions with which the permitholder is charged, specifying the pertinent code section, and Informing the permitholder of the right to a hearing. (c) At any time within 15 calendar days after service of a notice pursuant to subdivision (b), the permltholder may request In writing a hearing before a hearing officer to show cause why the permit suspension is not warranted. The hearing shall be held within 15 calendar days of the receipt of a request for a hearing. A failure to request a hearing within 15 calendar days shall be deemed a waiver ofthe right to a hearing. SEC. 17. Section 8.5 of this bill incorporates amendments to Section of the Health and Safety Code proposed by both this bill and Assembly Bill It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2013, (2) each bill amends Section of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 2297, in which case Section 8 of this bill shall not become operative. SEC. 18. No reimbursement is required by this act pursuant to Section 6 of Article XIDB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or Infraction, within the meaning of Section of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIDB of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of DiviSion 4 oftitle 2 of the Government Code. hltd:/lleoinfo.leojislature.cll.ol;lv/fao!slbillnavc Iientxtrtml?blJl 1d", OA B1616 Paoe 12 of.

51 '~... ~ ec:.dpi-i..... < Publit>Health California Homemade Food Act Frequently Asked Questions AS 1616 (Gatto) - Cottage Food Operations When does the new Cottage Food Law go into effect? The new law became effective January 1, The law requires the California Department of Public Health (CDPH) to carry out certain tasks associated with implementation, and imposes certain responsibilities on local planning and environmental health jurisdictions. Further information regarding the status of implementation can be obtained from your local environmental health agency. 1. What is a cottage food operation (CFO)? A CFO is an enterprise at a private home where specific low-risk food products that do not require refrigeration are prepared or packaged for sale to consumers. 2. What is meant by a private home? "Private home" means a dwelling, including an apartment or other rented space, where the CFO operator resides. 3. Are there limitationson the size of CFO sales? $35,000 or less in gross sales annually in 2013 $45,000 or less in gross sales annually in 2014 $50,000 or less in gross sales annually in 2015 and beyond 4. Can a CFO have employees? A CFO can have one full-time equivalent employee (not counting family members or household members). S. What cottage foods are CFOs permitted to produce? Only specific foods that are defined as "non-potentially hazardous" are approved for preparation by CFOs. These are foods that do not require refrigeration to keep them safe from bacterial growth that could make people sick. CDPH will establish and maintain a list of approved cottage food categories on their website. The list included in the new law includes: Cottage Food Law FrequentlyAsked Questions Page 1

52 Baked goods without cream, custard, or meat fillings, such as breads, biscuits, churros, cookies, pastries, and tortillas Candy, such as brittle and toffee Chocolate-covered nonperishable foods, such as nuts and dried fruit Dried fruit Dried pasta Dry baking mixes Fruit pies, fruit empanadas, and fruit tamales Granola, cereals, and trail mixes Herb blends and dried mole paste Honey and sweet sorghum syrup Jams, jellies, preserves, and fruit butter that comply with the standard described in Part 150 of Title 21 of the Code of federal Regulations. Nut mixes and nut butters Popcorn Vinegar and mustard Roasted coffee and dried tea Waffle cones and pizzelles 6. What are the two classifications of CFO's? "Class A" CFOs are only allowed to engage in "direct sale" of cottage food. "Class B" CFa's may engage in both "direct sale" and "indirect sale" of cottage food. 7. What is meant by "direct sale" of cottage food? "Direct sale" means a transaction between a CFa operator and a consumer, where the consumer purchases the cottage food product directly from the CFa. Direct sales include, but are not limited to, transactions at holiday bazaars or other temporary events, such as bake sales or food swaps, transactions at farm stands, certified farmers' markets, or through community-supported agriculture subscriptions, and transactions occurring in person in the cottage food operation within the jurisdiction of the local environmental health agency in which the CFa is permitted or registered. 8. What is meant by "indirect sale" of cottage food? "Indirect sale" means an interaction between a CFa, a third-party retailer, and a consumer, where the consumer purchases cottage food products made by the CFa from a third-party retailer that holds a valid permit issued by the local environmental health agency in their jurisdiction. Indirect sales include, but are not limited to, sales made to retail food facilities including markets, restaurants, bakeries, and delis, where food may be immediately consumed on the premises. Cottage Food Law FrequentlyAsked Questions Page 2

53 ~... fiii!_ tilt f'''''ut.\~ichealth CJi.'PI-{ 9. What are limitations on Internet sales and delivery of cottage food products? A cottage food operator may advertise as well accept orders and payments via Internet or phone. However, a CFO must deliver (in person) to the customer. A CFO may not deliver any CFO products via US Mail, UPS, FedEx or using any other third-party delivery service. A cottage food operator may not introduce a CFO product into interstate commerce. 10. What are limitations on advertising of CFO products? It is unlawful for any person to disseminate any false advertising of any food. An advertisement is false if it is false or misleading in any particular. A cottage food product that is found to be falsely advertised would be subject to enforcement action. 11. Do I need any special training or certification to make cottage foods? A person who prepares or packages cottage food products must complete a food processor course instructed by the CDPH within three months of being registered or permitted. 12. Does a CFO need a permit to operate? Planning and zoning: All CFO's need to obtain approval from their local city or county planning department. The Homemade Food Act gives planning departments several options to consider, so planning department requirements may vary between jurisdictions. Environmental Health: For "Class A" CFO's (direct sale only), registration with the local enforcement agency and submission of a completed "selfcertification checklist" approved by the local environmental health agency. For "Class B" CFO's (either direct and indirect or indirect only), a permit from the local environmental health agency is required. Other requirements: Check on other state or local requirements that may be applicable, such as Sellers Permits through the Board of Equalization, or Business licenses through your city or county. Registrations and permits are nontransferable between: 1) Persons 2) locations 3) Type of food sales [I.e., direct sales ("Class A") vs. indirect sales ("Class B") 4) Type of distribution 13. How much will the permitor registration cost the CFO? Each local jurisdiction will establish fees that are notto exceed the cost of providing the service. Additional fees may be charged for inspection and/or enforcement activities if Cottage Food Law FrequentlyAsked Questions Page 3

54 the cottage food operation is found to be in violation of California food safety laws on cottage food operations. 14. Will my CFO registration/permit allow me to sell at other retail venues? There may be health permits required to sell at other locations, such as Certified Farmers' Markets, Swap Meets or community events. Please check with your local environmental health department for additional permit requirements. 15. How often will a CFO be inspected? "Class A" CFO kitchens and food storage areas (referenced in the law as the "registered or permitted area") are not subject to initial or routine inspections. "Class B" CFO kitchens and food storage areas are inspected initially prior to permit issuance. "Class A or B" (complaint inspections) The local environmental health agency may access, for inspection purposes, the registered or permitted area where a cottage food operation is located if the representative has, on the basis of a consumer complaint, reason to suspectthat adulterated or otherwise unsafe food has been produced by the cottage food operation or that the cottage food operation has violated California food safety laws. 16. What are CFO operational requirements? All CFOs must comply with the following: No domestic activity in kitchen during cottage food preparation No infants, small children, or pets in kitchen during cottage food preparation Kitchen equipment and utensils kept clean and in good repair All food contact surfaces and utensils washed, rinsed, and sanitized before each use All food preparation and storage areas free of rodents and insects No smoking in kitchen area during preparation or processing of cottage food A person with a contagious illness shall refrain from preparing or packaging cottage food products Proper hand-washing shall be completed prior to any food preparation or packaging Water used in the preparation of cottage food products must be potable Cottage food preparation activities include: o Washing, rinsing, and sanitizing of any equipment used in food preparation o Washing and sanitizing hands and arms o Water used as an ingredient of cottage food. Cottage Food Law FrequentlyAsked Questions Page 4

55 ,~".,~.Ci.'PH _ f"ubhc-health 17. What has to be on my cottage food label? All cottage food products must be properly labeled in compliance with the Federal, Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 343 et seq.). The label must include: o The words "Made in a Home Kitchen" in 12-point type. o The name commonly used to describe the food product. o The name city, state and zip code of the cottage food operation which produced the cottage food product. Ifthe CFO is not listed in a current telephone directorythen a street address must also be declared. (A contact phone number or address is optional but may be helpful for consumers to contactyour business. o The registration or permit number ofthe CFO which produced the cottage food product and, in the case of "Class B" CFOs, the name of the county where the permit was issued. o The ingredients of the food product, in descending order of predominance by weight, if the product contains two or more ingredients. o The net quantity (count, weight, or volume) of the food product, it must be stated in both English (pound) units and metric units (grams). o A declaration on the label in plain language if the food contains any of the eight major food allergens such as milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, and soybeans. There are two approved methods prescribed by federal lawfor declaring the food sources of allergens in packaged foods: 1) in a separate summary statement immediately following or adjacent to the ingredient list, or 2) within the ingredient list. o The use of the following eleven terms are considered nutrient content claims (nutritional value of a food): free, low, reduced, fewer, high, less, more, lean, extra lean, good source, and light. Specific requirements have been established for the use ofthese terms. Please referto the Cottage Food Labeling Guideline for more details. o A health claim is a statement or message on the label that describes the relationship between a food component and a disease or health-related condition (e.g., sodium and hypertension, calcium and osteoporosis). Please referto the Cottage Food labeling Guideline for more details. o If the label makes approved nutrient content claims or health claims, the label must contain a "Nutrition Facts" statement on the information panel. Cottage Food Law FrequentlyAsked Questions PageS

56 o Labels must be legible and in English (accurately translated information in another language may also be included on the label). Labels, wrappers, inks, adhesives, paper, and packaging materials that come into contact with the cottage food product by touching the product or penetrating the packaging must be food-grade (safe for food contact) and not contaminate the food. In a permitted retail food facility (such as a restaurant, market, or deli), cottage food products served without packaging or labeling shall be identified to the customer as homemade on the menu, menu board or in another easily accessible location that would reasonably inform the consumer that the food or an ingredient in the food has been made in a private home. 18. What is my legal responsibility as a cottage food operator in ensuring that my food productis safe? Cottage food operators and/or their employees shall not commit any act that may cause contamination or adulteration of food. This would include making foods that are not on the approved food list and or making foods under unsanitary conditions or with spoiled or rancid ingredients. A cottage food operation that is not in compliance with the requirements of AB 1616 would be subject to enforcement action taken by the local environmental health agency and/or the California Department of Public Health. 19. What if I find out an ingredient I used has been recalled because it can make people sick or has been identified as the cause of food borne illness? You should notify your local environmental health agency or CDPH immediately and do not distribute anymore product. You may need to notify your customers and request that they return or dispose of the products. For specific food recall information, you can contact CDPH at: (916) or FDBinfo@cdph.ca.gov. 20. What is my liability as a cottage food business operating out of my home? You should check with your homeowner insurance company or your landlord if you are operating out of a rental property. Many homeowner insurance policies will not extend liability coverage to liabilities arising outof home-based businesses. Cottage Food Law FrequentlyAsked Questions Page 6

57 'fs"' '~ (=-"'Pl~l,...,. P\!bl1cHealth 21. What other educational resources and guidelines are availabletoassist me in ensuring I am making a safe food product? Please see the CDPH website or contact your local environmental health agency for guidance and resource documents or web links. 22. What can I do to ensure I am still meeting legal requirements if my cottage food operation grows to exceed the gross annual sales limit and/or I decide want to make another type of food product that is not on the approved food list? Please contact CDPH for registration and facility requirements for food processors. 23. Where can I file a complaint about a cottage food operation or cottage food product? You can file a complaint at the CDPH toll-free complaint line Cottage Food Law FrequentlyAsked Questions Page?

58 LOS Banos \1 1/;( ( /O\S/(W(/S 0/ CalifiJillia COMMUNITY DEVELOPMENT DEPARTMENT COTTAGE FOOD OPERATION APPROVAL PROCESS & REQUIREMENTS I. What is a Cottage Food Operation a. A Cottage Food Operation is an enterprise at a private home where lowrisk food products are prepared or packaged for sale to consumers. Approved and authorized by Assembly Bill II. Approval Process a. A complete application is submitted to the Community Development Department b. The Community Development Department determines completeness within ten (l0) business days c. Public hearing noticed at least ten (l0) days prior to the Planning Commission meeting Newspaper Mailed to property owner's within 300' radius ofsubject property d. Planning Commission by resolution grants approval ofthe Cottage Food Operation subject to criteria and conditions ofapproval e. Subsequent approvals are obtained administratively when the operator applies for their annual business license III.Criteria Applicable to all Cottage Food Operations a. Each Cottage Food Operation shall conform to all State and County laws, regulations and requirements. b. Foods allowed for the Cottage Food Operation must be in accordance with those listed as "approved" foods by the California Department ofpublic Health (CDPH). c. The operator ofa Cottage Food Operation shall reside within the residential unit used for such activity as their primary residence. d. No more than twenty-five (25) percentof the private dwelling may be utilized for the Cottage Food Operation. e. Only the home kitchen, meaning that which is primarily intended for use by the residents ofa home may be utilized for preparation ofcottage Food Operations.

59 f. No physical conversions or alterations to the residential nature and character ofthe residential unit where a Cottage Food Operation is being conducted shall be allowed in conjunction with the Cottage Food Operation. g. No portion ofany building other than the primary residence may be utilized for any aspect ofthe Cottage Food Operation. h. No Cottage Food Operation shall be located within 300 feet ofanother such operation. I. All Cottage Food Operations shall confonn to the requirements and restrictions ofthe Los Banos Municipal Code Noise Control. J. Only those individuals residing within the residential unit, as their primary residence, shall participate in a Cottage Food Operation, except for a fulltime equivalent employee. k. Customers ofany Cottage Food Operation shall be prohibited from consuming any products purchased from the Cottage Food Operation on the property where such product was produced. 1. Where a Cottage Food Operation is conducted from a residential unit within a multi-fumily residential complex, the operator ofthe Cottage Food Operation shall police, clean and maintain the property with regard to discarded items that may result from the Cottage Food Operation. m. Violations ofcriteria and conditions ofa Cottage Food Operation shall result in the revocation ofthe Business License and pennit issued by the City oflos Banos. n. No signage or advertising on the site is allowed. o. Gross sales carmot exceed those limits as established by the State of California. p. All persons who prepare or package cottage food products shall complete a food processor course instructed by the California Department ofpublic Health within the next three (3) months. (Copies ofeach certificate issued are to be submitted to the Community Development Department within three months ofpennit issuance). IV. Standard Conditions(the Planning Commission has the ability to modify if there is a need and the residential character ofthe neighborhood will not be changed-if modification from standard conditions is being sought, please explain the need on your operational statement) a. No Cottage Food Operation shall have customers at the private home between the hours of8 p.m. through 8 a.m. b. Commercial delivery ofitems to the private home shall be prohibited between the hours of8 p.m. through 8 a.m. c. All Cottage Food Operations shall have a minimum oftwo (2) offstreet parking spaces reserved for an employee and customer. d. No more than three (3) customers may visit the private residence daily.