The Santa Cruz County Board of Supervisors on Tuesday unanimously approved a two-year pilot program to allow people to operate small-scale commercial kitchen operations out of their homes.

The so-called Microenterprise Home Kitchen Operation (MEHKO) was modeled after similar programs in other jurisdictions, said Santa Cruz County Department of Environmental Health Consumer Protection Manager Olga Zuniga.

Beginning Jan. 1, people who meet certain health and safety standards will be able to run small-scale home-based facilities where food can be prepared for pickup, delivery or dine-in service. These will be limited to 30 meals per day, 90 per week and a maximum gross sales of $100,000.

Applicants must pay a  $470 home evaluation fee, and purchase an operational permit for $530, which must be renewed annually. 

Supervisor Bruce McPherson, who made the proposal, said that the program will provide a pathway for people already using their home kitchen to make food to sell

Supervisor Zach Friend agreed, saying it will also help members of the community who are struggling financially.

“This is an opportunity to both diversify the local economy and increase entrepreneurship, in particular in South County,” Friend said. 

The MEHKO program is also a way to allow small businesses to establish without the need to find a brick-and-mortar location, Supervisor Manu Koenig said. 

“By creating this framework, we’re eliminating one of the biggest barriers to anyone starting a new business, which is the need to find space in a space-constrained county,” he said.

The issue will come back before the board for a second reading and likely approval at the Sept. 24 meeting. The EHD will return to the board after one year with a status update, and will provide recommendations for continuing the program after the two-year pilot program limit. 

Applicants must meet housing code requirements, potable water and wastewater disposal standards, and must meet the standards tor space and equipment.For information, and to see the ordinance, visit bit.ly/3XlhJVd.

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