Agenda packet — El Cajon City Council, March 22, 2022 (part 1 of 2)

CITY COUNCIL

HOUSING AUTHORITY AND

SUCCESSOR AGENCY TO THE EL CAJON

REDEVELOPMENT AGENCY
Council Chamber
200 Civic Center Way
El Cajon, CA 92020
Agenda
MARCH 22, 2022, 3:00 p.m.

Bill Wells, Mayor Graham Mitchell, City Manager
Michelle Metschel, Deputy Mayor Vince DiMaggio, Assistant City Manager Steve Goble, Councilmember Morgan Foley, City Attorney
Gary Kendrick, Councilmember Angela Cortez, City Clerk
Phil Ortiz, Councilmember
CALL TO ORDER: Mayor Bill Wells
ROLL CALL: City Clerk Angela Cortez

PLEDGE OF ALLEGIANCE TO FLAG AND MOMENT OF SILENCE
POSTINGS: The City Clerk posted Orders of Adjournment of the March 8, 2022, Meeting and the Agenda of the March 22, 2022, Meeting in accordance to State Law and Council/Authority/Successor Agency to the Redevelopment Agency Policy.

PRESENTATIONS:

AGENDA CHANGES:
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"'Porate~

CONSENT ITEMS:

Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.

1. Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting

RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the March 8, 2022, Meeting of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants
RECOMMENDATION:

That the City Council approves payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only
RECOMMENDATION:

That the City Council approves the reading by title and waives the reading in full of all Ordinances on the Agenda.

4. Contract Change Order for Traffic Signal System Maintenance, Emergency Repairs, and Related Construction Services, Bid No. 001-20

RECOMMENDATION:

That the City Council adopts the next Resolution, in order to approve the Contract Change Order in the amount of $60,000 to Southwest Signal Service, Incorporated, for the Traffic Signal System Maintenance, Emergency Repairs, and Related Construction Services contract, Bid No. 001-20, for Fiscal Year 2021-2022.

5. Contract Change Order for Street Light Maintenance, Emergency Repairs, and Related Construction Services, Bid No. 028-18

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to approve the Contract Change Order in the amount of $60,000 to CTE, Incorporated, for the Street Light Maintenance, Emergency Repairs, and Related Construction Services contract, Bid No. 028-18, for Fiscal Year 2021-2022.

6. Community Event in the Right-of-Way – Cajon Classic Cruise

RECOMMENDATION:

That the City Council approves the use of the public right-of-way for the 2022 “Cajon Classic Cruise” series, subject to conditions.

PUBLIC COMMENT:

At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.

WRITTEN COMMUNICATIONS:

PUBLIC HEARINGS:

7. Microenterprise Home Kitchen Operations - MEHKO

RECOMMENDATION:

That the City Council:

Opens the public hearing and receives testimony;1.

Closes the public hearing;2.

Moves to INTRODUCE the next ORDINANCE, in order, APPROVING Zoning Code Amendment No. 2022-0001, and amending Title 1; and

3. Requests that the City Clerk read the ORDINANCE by title only.4.

ADMINISTRATIVE REPORTS:

8. Draft Economic Development Strategic Plan

RECOMMENDATION:

That the City Council:

Provides feedback on the draft plan;1.

Directs staff to make any adjustments and finalize the plan; and2.

Directs staff to make the finalized plan available for public review and return the plan for adoption.

3. 9. Dollar Days Analysis

RECOMMENDATION:

That the City Council accepts this report.

10. 2021 General Plan Annual Progress Report

RECOMMENDATION:

That the City Council:

Accepts the 2021 General Plan Annual Progress Report; and1.

Directs staff to forward the report to the Governor's Office of Planning and Research (OPR), the State Department of Housing and Community Development (HCD), and the San Diego Association of Governments (SANDAG).

2. 11. Fiscal Year 2021-22 Mid-Year Report and Five-Year Business Plan Update

RECOMMENDATION:

That the City Council:

Receives and accepts the Fiscal Year 2021-22 Mid-Year Report and Five-Year Business Plan update;

1. Authorizes the proposed personnel changes detailed in the report; and2.

Increases or modifies Fiscal Year 2021-22 appropriations in the net amount of $610,000 for additional needs as detailed in the report.

3. 12. One-Year Nurse Navigator Pilot Program

RECOMMENDATION:

That the City Council allocates $300,000 of General Fund Reserves for a Nurse Navigator Pilot Program.

COMMISSION REPORTS:

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS
SANDAG (San Diego Association of Governments) Board of Directors; SANDAG – Audit Committee, San Diego Division; LAFCO.

13. Council Activity Report

ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:

14. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate; METRO Commission/Wastewater JPA – Alternate.

15. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

16. DEPUTY MAYOR MICHELLE METSCHEL

16. DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

17. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

JOINT COUNCILMEMBER REPORTS:

GENERAL INFORMATION ITEMS FOR DISCUSSION:

ORDINANCES: FIRST READING

ORDINANCES: SECOND READING AND ADOPTION

18. An Ordinance addressing the use of Electronic Signatures by the City of El Cajon

RECOMMENDATION:

That Mayor Wells requests the City Clerk to recite the title.

An Ordinance Adding Chapter 2.50 to Title 2 of the El Cajon Municipal Code Authorizing the use of Electronic and Digital Signatures

CLOSED SESSIONS:

ADJOURNMENT: The Adjourned Regular Joint Meeting of the El Cajon City Council/ El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 22 day of March 2022, is adjourned to Tuesday, April 12, 2022, at 3:00 p.m.

City Council
Agenda Report
Agenda Item 1.

DATE: March 22, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Angela Cortez, City Clerk
SUBJECT: Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting
RECOMMENDATION:

Attachments
03-08-22DRAFTminutes - 3PM

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 40 - 3:00 p.m.

JOINT MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

March 8, 2022

A Regular Joint Meeting of the El Cajon City Council/Housing Authority/ Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, March 8, 2022, was called to order by Mayor/Chair Bill Wells at 3:01 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Goble, Kendrick, and Ortiz Council/Agencymembers absent: None
Deputy Mayor/Vice Chair present: Metschel
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Foley, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO FLAG led by Mayor Wells and MOMENT OF SILENCE. (The Courts have concluded that sectarian prayer, as part of City Council Meetings, is not permitted under the Constitution).

POSTINGS: The City Clerk posted Orders of Adjournment of the February 22, 2022, meetings and the Agenda of the March 8, 2022, meeting in accordance with State Law and El Cajon City/Housing Authority/Succe ssor Agency to the El Cajon Redevelopment Agency Policy.

The Valley of Opportunity
~ ~ ~
C'o V '-ci ~PorateO

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 41 - 3:00 p.m.

PRESENTATIONS:

 Annual Dance & Tumbling Recital at the Magnolia

 Human Trafficking Awareness

AGENDA CHANGES: None

Mayor Wells acknowledged National Women’s Day, and Deputy Mayor Metschel shared words of encouragement for all women.

CONSENT ITEMS: (1 – 5)

MOTION BY WELLS, SECOND BY KENDRICK, to APPROVE Consent Items 1 to 5.

MOTION CARRIED BY UNANIMOUS VOTE.

1. Minutes of El Cajon City Council/ Housing Authority/Successor Agency to the E l Cajon Redevelopment Agency Meetings

Approve Minutes of the February 22 , 20 22, Meeting s of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants

Approve payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title only

Approve the reading by title and waive s the reading in full of all Ordinances on the Agenda.

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 42 - 3:00 p.m.

CONSENT ITEMS: (Continued)

4. Award of Bid No. 016-22 – Fire Admin Offices at Public Safety Center Re-Bid

1. Adopt Resolution No. 015 -22 to Approve Plans and Specifications for the Fire Admin Offices at Public Safety Center Re-Bid project, Bid No. 016-22;

2. Find the protest submitted by 13Zero3, Inc., dba 13Zero3 Construction (13Zero3) timely but without merit;

3. Find the protests submitted by SAS Construction (SAS) and Firestone Builders, Inc. (FBI), to be untimely and without merit;

4. Find the first through sixth low bidders non-responsive for the reasons set forth in the agenda report; and

5. Adopt Resolution No. 016 -22 to Award the bid to the lowest responsive, responsible bidder, SWCS, Inc., in the amount of $444,470 contingent upon approval of funding.

5. Contract Amendment for Window Repair/Maintenance at City Hall

Adopt Resolution No. 017 -22 to increa se the contract for the Window Repair/Maintenance at City Hall contract in the not-to-exceed amount of $14,075.

PUBLIC COMMENT: None

WRITTEN COMMUNICATIONS: None

PUBLIC HEARINGS: None

ADMINISTRATIVE REPORTS:

6. Heartland Fire & Rescue Administrative Offices - Project Update

RECOMMENDATION: That the City Council:

1. Receives the Heartland Fire Administrative Offices (PS0012) project update;

2. Authorizes the appropriation of fund equity, and transfer, of $220,364 in the City Capital Improvement Program Fund (501); and

3. Appropriates $220,364 of additional funding in the Heartland Fire Administrative Offices (PS0012) project.

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 43 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Item 6 – Continued)

DISCUSSION

Associate Engineer, Senan Kachi, provided detailed information of the Item.

No comments were received for the Item.

Discussion ensued among Council and Staff concerning the following:
 Construction and contingency costs; and
 Clarification that the Joint Powers Agreement Cities each cover e xpenses for office space needed at their respective cities.

MOTION BY ORTIZ, SECOND BY METSCHEL, to RECEIVE the Heartland Fire Administrative Offices (PS0012) project update; Authorize the appropriation of fund equity, and transfer, of $220,364 in the City Capital Improvement Program Fund (501); and Appropriate $220,3 64 of additional funding in the Heartland Fire Administrative Offices (PS0012) project.

MOTION CARRIED BY UNANIMOUS VOTE.

7. Legislative Update

DISCUSSION

Assistant City Manager DiMaggio provided detailed information of the current Assembly and Senate bills of interest to the City.

Councilmember Ortiz commented on AB 481 and how drones are classified as military vehicles.

Councilmember Kendrick expressed concern about SB 519, which legalizes the possession of hallucinogenic drugs, and requested staff to send a letter of opposition on behalf of the City Council to the Governor.

No public comments were received for the Item.

MOTION BY KENDRICK, SECOND BY METSCHEL, to SEND a letter to the Governor on behalf of the City Council, to oppose Senate Bill 519.

MOTION CARRIED BY UNANIMOUS VOTE.

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 44 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Continued)

8. Side Letter Agreement Between the City of El Cajon and the El Cajon Police Officers' Association

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, approving a side letter agreement (att ached) between the City and the El Cajon Police Officers' Association temporarily modifying Article 5, Section B of the Memorandum of Understanding between the City of El Cajon and the El Cajon Police Officers' Association.

DISCUSSION

City Manager Mitchell provided detailed information of the Item.

No comments were received for the Item.

MOTION BY KENDRICK, SECOND BY ORTIZ, to ADOPT Resolution No. 018-22, approving a side letter agreement between the City an d the El Cajon Police Officers' Association temporarily modifying Article 5, Section B of the Memorandum of Understanding between the City of El Cajon and the El Cajon Police Officers' Association.

MOTION CARRIED BY UNANIMOUS VOTE.

COMMISSION REPORTS: None

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS:

SANDAG (San Diego Association of Governments) Board of Directors; SANDAG – Audit Committee; LAFCO.

9. Council Activities Report/Comments

Report as submitted.

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 45 - 3:00 p.m.

ACTIVITIES REPORTS OF COUNCILMEMBERS:

10. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate; METRO Commission/Wastewater JPA – Alternate.

Council Activities Report/Comments.

In addition to the submitted r eport, Councilmember Goble shared that the Sleeping Cabin project at Meridian Baptist Church is near completion.

11. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

Council Activities Report/Comments.

In addition to the submitted report, Counc ilmember Kendrick spoke about t he video, produced by the City, that clarifies that the homeless encampments on Magnolia Avenue are in the City of San Diego limits, and not within City of El Cajon boundaries.

12. DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Par k Joint Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

Council Activities Report/Comments.

Report as submitted.

13. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

Council Activities Report/Comments.

Report as submitted.

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 46 - 3:00 p.m.

JOINT COUNCILMEMBER REPORTS: None

GENERAL INFORMATION ITEMS FOR DISCUSSION: None

ORDINANCES: FIRST READING

14. Introduction of Ordinance addressing the use of Electronic Signatures by the City of El Cajon

RECOMMENDATION:

That the City Council moves to introduce the next Ordinance, in order, and directs the City Clerk to read the Ordinance by title only.

DISCUSSION

No comments were received for the Item.

MOTION BY ORTIZ, SECOND BY METSCHEL, to INTRODUCE the
Ordinance.

MOTION CARRIED BY UNANIMOUS VOTE.

The City Clerk recited the title of the ordinance for a first reading.

AN ORDINANCE ADDING CHAPTER 2.50 TO
TITLE 2 OF THE EL CAJON MUNICIPAL CODE

AUTHORIZING THE USE OF

ELECTRONIC AND DIGITAL SIGNATURES

ORDINANCES: SECOND READING AND ADOPTION - None

CLOSED SESSIONS:

RECOMMENDATION: That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency adjourns to Closed Session as follows:

15. Closed Session - Conference with Real Property Negotiators - pursuant to Government Code section 54956.8:

Property: 31.7-acre vacant site at the northwest corner of Weld Boulevard and Cuyamaca Street

Negotiating Parties : Ches nut Properties, LLC; SGCLMC -Weld Investment Company, L.P.

Joint Meeting: El Cajon City Council/Housing Authority/ March 8, 2022 Successor Agency to the Redevelopment Agency - 47 - 3:00 p.m.

CLOSED SESSIONS: (Continued)

City Negotiators: City Manager; Assistant City Manager; City Attorney

Under Negotiation : Price and terms for acquisition of leasehold interest, and for new lease-back to Negotiating Parties

ADJOURNED to Closed Session at 3:59 p.m.

RECONVENED To Open Session at 4:04 p.m.

City Attorney Foley reported the following action:
 No reportable action taken

Councilmember Kendrick acknowl edged the public defenders assisting the war against Ukraine.

Adjournment: Mayor Wells adjourned the Regular Joint Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 8th day of March, 2022, at 4:05 p.m., to Tuesday, March 22, 2022, at 3:00 p.m.

________________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary

City Council
Agenda Report
Agenda Item 4.

DATE: March 22, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Yazmin Arellano, Director of Public of Works
SUBJECT: Contract Change Order for Traffic Signal System Maintenance, Emergency Repairs, and Related Construction Services, Bid No. 001-20 RECOMMENDATION:

BACKGROUND:

The City of El Cajon is the lead agency for a multi-city contract that provides traffic signal system maintenance, emergency repairs, and related construction services for the cities of El Cajon, La Mesa, Lemon Grove, and Santee. The cities have been using a cooperative arrangement for the past twenty-five years in order to receive competitive unit bid prices for this type of work.

Since the beginning of this fiscal year, there have been traffic signal pole and equipment knockdowns that have occurred at eleven (11) different traffic signal controlled intersections due to vehicle collisions. The total material and labor cost to replace these poles and equipment is approximately $102,000. Staff typically budget approximately $35,000 to replace traffic signal pole and equipment knockdowns each fiscal year.

The proposed increase of $60,000 in the traffic signal system maintenance contract of $230,462.22 would result in a total contract amount of $290,049.38 (a 26% increase) for the current term. City Council Policy B-4, “Contract Change Orders,” requires approval by City Council if the proposed total contract amount exceeds 25% of the original contract price. The 25% increase is considered cumulative over the life of the contract. Funding for this work is included in the Fiscal Year 2021-2022 Public Works Traffic Engineering Program budget.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This item is statutorily exempt from CEQA.

FISCAL IMPACT:

This action would increase the project funds by $60,000 for this proposed Contract Change Order to complete the work for the remainder of the fiscal year.

Prepared By: Mario Sanchez, City Engineer
Reviewed By: Yazmin Arellano, Director of Public Works
Approved By: Graham Mitchell, City Manager
Attachments
Resolution

Page 1 of 2 ends

RESOLUTION NO. ___-22

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CAJON APPROVING CONTRACT CHANGE ORDER

AND APPROPRIATION OF ADDITIONAL FUNDS FOR

TRAFFIC SIGNAL SYSTEM MAINTENANCE, EMERGENCY REPAIRS,

AND RELATED CONSTRUCTION SERVICES
(Bid 001-20)

WHEREAS, the City of El Cajon ("the City") is the lead agency for a multi -city contract with Southwest Traffic Signal Service, Inc. (the "Contractor") that provides traffic signal system maintenance, emergency repairs, and related construction services for the cities of El Cajon, La Mesa, Lemon Grove, and Santee (the "Contract"); and

WHEREAS, by that certain S econd Amendment to the P ublic Works Contract between the City of El Cajon and Southwest Traffic Signal, Inc., the parties renewed the Contract for a second renewal term of one (1) year with a not-to-exceed amount of $230,462.22 for the renewal term of July 1, 2021 through June 30, 2022 (the "2021-22 Limit"); and

WHEREAS, since July 1, 2021, the need for Contractor’s services in the City has unexpectedly increased and services are now expected to exceed the 2021- 22 Limit before the conclusion of the current Contract term; and

WHEREAS, it is anticipated that an increase to the 2021-22 Limit in the amount of $60,000.00, for a total Contract amount of $290,049.38 for the current Contract term, is necessary and appropriate, and requires the approval of the City Council as it exceeds the amount that could be approved by the City Manager under City Council Policy B -4; and

WHEREAS, funding for this work is included in the Fiscal Year 2021 -2022 Public Works Traffic Engineering Program budget; and

WHEREAS, the City Council believes it to be in the City's best interest to approve the Contract Change Order and appropriate additional funds in the not-to-exceed amount of $60,000 for unanticipated additional services from the Contract during the current Contract term.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves a Contract Change Order to provide additional compensation of $60,000 as requested by staff , for a total not -to-exceed amount of $290,049.38 during the current Contract term.

Page 2 of 2 ends

3. The City Council hereby authorizes the City Manager to execute such documents, reports, and agreements necessary for the Contract Change Order as described herein.

03/22/22 CC Agenda
Reso – Approve Change Order – Southwest Signal (Traffic Signal Maintenance) 031422 City Council
Agenda Report
Agenda Item 5.

DATE: March 22, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Yazmin Arellano, Director of Public of Works
SUBJECT: Contract Change Order for Street Light Maintenance, Emergency Repairs, and Related Construction Services, Bid No. 028-18
RECOMMENDATION:

BACKGROUND:

The City of El Cajon is the lead agency for a multi-city contract that provides streetlight system maintenance, emergency repairs, and related construction services for the cities of El Cajon, La Mesa, Lemon Grove, and Santee. The cities have been using a cooperative arrangement for the past twenty-five years to receive competitive unit bid prices for this type of work. In 2019, the Public Works Department added the City’s Parks lighting inventory to the Street Light maintenance contract to consolidate similar work into one contract.

Since the beginning of this fiscal year, there have been twelve (12) street light knockdowns due to vehicle collisions. The total material and labor cost to replace these street lights is approximately $85,000. Staff typically budget roughly $25,000 to replace street light knockdowns each fiscal year.

The proposed increase of $60,000.00 in the street light maintenance contract amount of $151,049.38 would result in a total contract amount of $211,049.38 (a 39.7% increase) for the current term. City Council Policy B-4, “Contract Change Orders,” requires approval by City Council if the proposed total contract amount exceeds 25% of the original contract price. The 25% change increase is considered cumulative over the life of the contract. Funding for this work is included in the Fiscal Year 2021-2022 Public Works Traffic Engineering, Parks Operations, and Transportation Program budget.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This item is statutorily exempt from CEQA.

FISCAL IMPACT:

This action would increase the project funds by $60,000 for this proposed Contract Change Order to complete the work for the remainder of the fiscal year.

Prepared By: Mario Sanchez, City Engineer
Reviewed By: Yazmin Arellano, Director of Public Works
Approved By: Graham Mitchell, City Manager
Attachments
Resolution

Page 1 of 2 ends

RESOLUTION NO. ___-22

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CAJON APPROVING CONTRACT CHANGE ORDER

AND APPROPRIATION OF ADDITIONAL FUNDS FOR

STREET LIGHT MAINTENANCE, EMERGENCY REPAIRS, AND

RELATED CONSTRUCTION SERVICES
(Bid 028-18)

WHEREAS, the City of El Cajon ("the City") is the lead agency for a multi -city contract with C.T.E., Inc. (the "Contractor") that provides streetlight system maintenance, emergency repairs, and related construction services for the cities of El Cajon, La Mesa, Lemon Grove, and Santee (the "Contract"); and

WHEREAS, on September 16, 2021, the not -to-exceed amount of $151,049.38 (the "2021-22 Limit") was approved for the current Contract term of September 1, 2021 through August 31, 2022; and

WHEREAS, it is anticipated that an increase to the 2021-22 Limit in the amount of $60,000.00, for a total Contract amount of $211,049.38 for the current Contract term, is necessary and appropriate, and requires the approval of the City Council as it exceeds the amount that could be approved by the C ity Manager under City Council Policy B -4; and

WHEREAS, funding for this work is included in the Fiscal Year 2021 -2022 Public Works Traffic Engineering, Parks Operations, and Transportation Program budget; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves a Contract Change Order to provide additional compensation of $60,000 as requested by staff , for a total not -to-exceed amount of $211,049.38 during the current Contract term.

Page 2 of 2 ends

3. The City Council hereby authorizes the City Manager to execute such documents, reports, and agreements necessary for the Contract Change Order as described herein.

03/22/22 CC Agenda
Reso – Approve Change Order – CTE (Street Light Maintenance) 031022 City Council
Agenda Report
Agenda Item 6.

DATE: March 22, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Frank Carson, Director of Parks & Recreation
SUBJECT: Community Event in the Right-of-Way – Cajon Classic Cruise RECOMMENDATION:

That the City Council approves the use of the public right-of-way for the 2022 “Cajon Classic Cruise” series, subject to conditions.

BACKGROUND:

Downtown El Cajon Business Partners, the management company for the Downtown El Cajon Property-Based Improvement District (PBID), requests approval for the 2022 “Cajon Classic Cruise” car show series. The weekly shows will be held every Wednesday evening from 5:00 to 8:00 p.m., May 4 through October 26, 2022, subject to compliance with the Public Health Officer orders allowing (or conditionally allowing) public gatherings of this size and nature.

The Cajon Classic Cruise events will include amplified music, inflatables, promotional banners, food/merchandise vendors, and informational booths. These events are open to the public with approximately 2,000 attendees anticipated weekly. In accordance with El Cajon Municipal Code Chapter 12.24, staff recommends that City Council approve the use of the public right-of-way for the proposed 2022 “Cajon Classic Cruise” series.

The event is not for the sole purpose of advertising products, goods, or for private profit.

Instead, the event will provide a central venue to promote community involvement, City awareness, and public camaraderie. Traffic management has been approved by the City’s Traffic Engineer, which will be coordinated with Public Works staff and Police to ensure a safe and healthy event.

The event has occasionally been used by individuals to exercise their freedom of expression on topics unrelated to the event itself. Staff therefore feels that it is necessary to include provisions within this permit that strike a balance between accommodating the activities directly related to the event, while also providing a designated location within the event boundaries for the expression of Constitutionally-protected speech.

For the 2022 tentative season, organizers are requesting closure of the following streets.

Partial Street Closures (May 4 or first show – October 26, 2022) 2:30 to 10:00 p.m. Sulzfeld Way: North of East Main Street to south of the alley 2:30 to 10:00 p.m. Orange Avenue: South of West Main Street to north of the alley 2:30 to 10:00 p.m. Sunshine Avenue: South of West Main Street to north of the alley Full Street Closures (June 29 or first show, August 3, September 21 & Oct 26, 2022) 2:30 to 10:00 p.m. Sulzfeld Way: North of East Main Street to south of the alley 2:30 to 10:00 p.m. Orange Avenue: South of West Main Street to north of alley 2:30 to 10:00 p.m. West Main Street: East of Sunshine Avenue to west of Magnolia Avenue 2:30 to 10:00 p.m. East Main Street: East of Magnolia Avenue to west of Claydelle Avenue

Upon approval, the Special Event Committee will notify the Downtown El Cajon Business Partners of the additional conditions to be met which include: approved certificates of insurance, a signed petition from a majority of affected businesses and residents, and any necessary permits or licenses. The applicant must meet with City staff to review all conditions before final approval of event.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) according to Section 15061 (b)(3) the “General Rule,” which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The temporary use of the City’s right-of-way for a community event and the detouring of other modes of transportation within City streets will not have a significant effect on the environment.

FISCAL IMPACT:

Applicable fees to be paid by the applicants.

Prepared By:

Reviewed By: Vince DiMaggio, Assistant City Manager
Approved By: Graham Mitchell, City Manager
City Council
Agenda Report
Agenda Item 7.

DATE: March 22, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Michael Viglione, Senior Planner
SUBJECT: Microenterprise Home Kitchen Operations - MEHKO RECOMMENDATION:

That the City Council:

Opens the public hearing and receives testimony;1.

Closes the public hearing;2.

Moves to INTRODUCE the next ORDINANCE, in order, APPROVING Zoning Code Amendment No. 2022-0001, and amending Title 1; and

3. Requests that the City Clerk read the ORDINANCE by title only.4.

PROJECT DESCRIPTION:

On January 25, 2022, City Council directed staff to incorporate Microenterprise Home Kitchen Operations (MEHKO) performance standards into the El Cajon Municipal Code (ECMC). The ECMC includes nuisance regulations within Title 1 (General Provisions) and performance standards for residential zones within Title 17 (Zoning), but it does not include specific regulations related to MEHKOs. The proposed changes to the ECMC will allow for the regulation of MEHKOs through Title 1 and Title 17 by defining terms, adding business licensing requirements, and establishing performance standards.

BACKGROUND:

Assembly Bills (AB) 626 and 377 allowed the County of San Diego (County) to adopt an ordinance to permit the operation of MEHKOs throughout the County. Where permitted, MEHKOs may prepare and sell food for on-site dining, take-out, or delivery subject to operational standards enforced by the County. The legislation allows a MEHKO to operate in a single-family or multi-family home, whether the owner or renter occupies the residence and includes monetary and daily/weekly meal maximums. On January 12, 2022, the County Board voted unanimously to adopt an ordinance allowing MEHKOs as part of a temporary program for a two-year period.

The temporary MEHKO ordinance approved by the Board applies to all jurisdictions in the County and includes requirements or operational provisions including food safety certificates, food storage areas, potable water, and ongoing testing to be enforced by the County Department of Environmental Health and Quality. Complaints regarding the operation of MEHKOs will be enforced by individual cities, which may choose to utilize existing performance standards or adopt new standards. Violation of a performance standard is considered a nuisance and would be subject to code compliance action.

It is noteworthy to mention that legislation introduced in the State Senate (SB 972, Gonzalez) proposes to remove the monetary and daily/weekly meal maximums for MEHKO operations and would allow MEHKOs to operate a mobile food facility out of a home kitchen (without requirements for commercial equipment or allowances for local zoning regulations). SB 972 must be passed by the Legislature and signed by the Governor in order to become effective.

DISCUSSION
In order to ensure that performance standards are clear and concise for MEHKOs operating in the City, staff recommends changes to the ECMC Title 1 and Title 17. Title 1 includes current nuisance standards and the proposed amendments will define MEHKO terminology and circumstances that result in a nuisance. Proposed amendments to Title 17 include adding MEHKOs as a permitted land use, requiring a business license, referencing nuisance conditions in Title 1, and requiring building permits for commercial equipment when necessary. The complete content of each definition and standard is available in the proposed ordinance attached to this report. MEHKO operations may not:

Block or create parking congestion on city streets.

Store greases in such a manner as to be considered a fire hazard or to attract vermin, whether indoors or outdoors.

Dispose of greases into the sewer system through a residential drain or toilet.

Cause a visible build-up of greases inside residential ventilation hoods and shafts, on walls, ceilings, rooftops, or other surfaces in a way that may constitute a fire hazard or attract vermin.

Create nuisance smoke, odors, or noises in common areas or shared gathering areas.

Operate an outdoor wood-burning oven or bar-b-que in a manner that may constitute a hazard or attract vermin.

Store refuse in an unsanitary manner or that which attracts vermin.

Serve alcoholic beverages without a license from the California Department of Alcoholic Beverage Control, including but not limited to violations of existing alcohol regulations.

PLANNING COMMISSION RECOMMENDATION:

On March 1, 2022, the Planning Commission held a public hearing to consider the new MEHKO standards in Title 17 only. The Commission discussed the item, and voted 5-0 to adopt Resolution No. 11059, recommending City Council approval of the project. •
•
•
•
•
•
•
•
FINDINGS:

A. The proposed zoning amendment, including any changes proposed in the various land uses to be authorized, is compatible with the objectives, policies, general land uses, and programs specified in the general plan.

The proposed changes to the Zoning Code further the goals of the General Plan by maintaining the quality of residential neighborhoods. Further, pursuant to Goal 10, the City “shall periodically revise its regulatory codes, ordinances and policies so that they may reflect current, upgraded standards of development and performance.” The proposed Zoning Code changes will clarify MEHKO performance standards and facilitate their consistent and objective application.

B. The proposed zoning amendment is consistent with any applicable specific plan governing development of the subject property.

The proposed Zoning Code amendment is applicable citywide. No zone changes are proposed as part of this project, and thus the proposed changes do not conflict with specific plans.

C. It is in the public necessity and convenience and/or general welfare that the zoning regulations governing the property be changed.

The proposed Zoning Code amendment is applicable citywide and is not property-specific.

Further, the proposed changes provide clarity, consistency, and objective standards for MEHKOs to the benefit of both MEHKO operators and residents and thus advances the general welfare of residential neighborhoods within the City.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed Zoning Code Amendment is exempt from the provisions of the California Environmental Quality Act (CEQA) according to the common sense exemption (CEQA Guidelines, section 15061(b)(3)). The common sense exemption applies where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed amendment does not result in any development or changes to the physical environment and does not raise this project to a level of significance that warrants CEQA analysis .

PUBLIC NOTICE & INPUT:

Notice of this public hearing was published in the East County Gazette on February 17, 2022 and March 10, 2022 in compliance with Government Code sections 65090, 65091, and 65092, as applicable. Additionally, as a public service, the notice was posted in the kiosk at City Hall and on the City’s website under “Public Hearings/Public Notices.” The notice was also mailed to the two public libraries in the City of El Cajon, located at 201 East Douglas Avenue and 576 Garfield Avenue.

RECOMMENDATION:

Staff recommends approval of amending Title 1 and Title 17 addressing regulatory changes for MEHKOs and to provide clarity in the application of the ECMC.

Prepared By: Michael Viglione, Senior Planner
Reviewed By: Anthony Shute, Director of Community Development Approved By: Graham Mitchell, City Manager
Attachments
Draft Ordinance
PC Resolution No. 11059
San Diego County Department of Environmental Health and Quality Microenterprise Home Kitchen Operations (MEHKO) FAQs revised 03/09/2022
SB 972

Page 1 of 4 ends

ORDINANCE NO. ___

AN ORDINANCE AMENDING CHAPTER 1.16 OF TITLE 1
AND CHAPTERS 17.105 AND 17.140 OF TITLE 17, AND ADDING
CHAPTER 17.225.250 OF TITLE 17 OF THE EL CAJON MUNICIPAL CODE

REGARDING MICROENTERPRISE HOME KITCHEN OPERATIONS

THE CITY COUNCIL OF THE CITY OF EL CAJON DOES ORDAIN AS FOLLOWS:

Section 1. Section 1.16.010 of Chapter 1.16 of Title 1 of the El Cajon Municipal Code is hereby repealed.

Section 2. A new section 1.16.010 is hereby added to Chapter 1.16 of Title 1 of the El Cajon Municipal Code to read as follows:

1.16.010 Terms defined.

For the purposes of this chapter:

"Authorized personnel" includes all department heads and designees.

"Owner" includes owners of any interest in the property, including but not limited to, owners, lessees, sublessees, mortgagee in possession, licensee, beneficiaries of deeds of trust on the property, and any person in charge and control of the property.

"Microenterprise home kitchen operation" ("MEHKO") is a restricted food service facility as defined in California Health & Safety Code section 113825.

Section 3. A new section 1.16.025 is hereby added to Chapter 1.16 of Title 1 of the El Cajon Municipal Code to read as follows:

1.16.025 Nuisance defined – Microenterprise home kitchen operations - MEHKO

A. In order to mitigate concerns related to food safety and potential negative impacts on the neighborhoods where
microenterprise home kitchen operations have been
permitted in the city by the County of San Diego including, without limitation, adverse traffic or parking; excessive noise, odors, fumes, vibrations, food or grease waste disposal; or the existence of vermin related to such operations, and in addition to any nuisance defined elsewhere in this code or under State laws, it shall be deemed a nuisance for any microenterprise home kitchen operation ("MEHKO") to:

---

Page 2 of 4 ends

1. Directly, through customers, or permitted delivery
services, cause blockage or congestion on city rights - of-way such that city agencies are impeded, including,
but not limited to maintenance, solid waste, and street sweeping, or that results in repeated neighbor
complaints by multiple neighbors, including for parking congestion.

2. Store greases in such a manner as to be considered a fire hazard or is attractive to vermin, whether indoors or outdoors.

3. Dispose of greases into the municipal sewer system
through a residential drain or toilet or otherwise in
violation of Chapter 13.20 of this code.

4. Cause a visible build- up of greases inside residential ventilation hoods and shafts, on wall s, ceilings,
rooftops, or other surfaces in a way that may constitute a fire hazard or attract vermin.

5. Create nuisance smoke, odors, or noises in common
areas or shared gathering areas including but not
limited to violations of Chapter 9.44 of this code, such that multiple neighbors file complaints.

6. Operating an outdoor wood-burning oven or bar-b-que
in a manner that may constitute a hazard or attract
vermin including but not limited to violations of Chapter

8.04 of this code , such that multiple neighbors file
complaints.

7. Storing of refuse in an unsanitary manner or that which attracts vermin.

8. Serving alcoholic beverages without a license from the California Department of Alcoholic Beverage Control,
including but not limited to violations of Chapter 17.210 of this code.

B. Nuisances described in this section may be abated according to Chapter 1.16, State laws, or both.

Section 4. A new section 17.105.020 is hereby added to Chapter 17.105 of Title 17 of the El Cajon Municipal Code to read as follows:

Page 3 of 4 ends

17.105.020 Definitions.

"Microenterprise home kitchen operation" ("MEHKO") is a restricted food service facility as defined in California Health & Safety Code section 113825.

Section 5. A new section 17.140.210 is hereby added to Chapter 17.140 of Title 17 of the El Cajon Municipal Code to read as follows:

Residential
Zones PRD
RS-
40 RS-
20 RS-
14 RS-
9 RS-
6 RM-
6000
RM-
4300
RM-
2500
RM-
2200
RM-
1450
RM-
HR Notes
Nonresidential Uses (subject to density restrictions)
Microenterprise
home kitchen
operation
(MEHKO)
P P P P P P P P P P P P 17

17. Subject to the provisions of section 1.16.025 (nuisance defined – microenterprise home kitchen operations) and Chapter 17.225.250 (microenterprise home kitchen operations - MEHKO)

Section 6. A new section 17.225.250 is hereby added to Chapter 17.225 of Title 17 of the El Cajon Municipal Code to read as follows:

17.225.250 Microenterprise home kitchen operations - MEHKO

A. The Microenterprise Home Kitchen Operations Ordinance of the county of San Diego, being Chapter 5 of Division 1 of Title 6 of the San Diego County Code of Regulatory Ordinances (sections 61.501 through 61.505) ("County Code Chapter 5"), as adopted by the county of San Diego, is hereby adopted by reference as the regulatory provisions applicable to any microenterprise home kitchen operation ("MEHKO"),
permitted by the county of San Diego and operating in the city of El Cajon, to prevent conditions of such facilities, and the mishandling of food prepared, served, sold, or stored in such facilities, from spreading foodborne illnesses, and each and all such regulations, provisions, penalties, conditions and terms of County Code Chapter 5 are referred to, adopted and made a part of this chapter as though fully set out in this chapter, excepting such portions as are added deleted,
modified or amended by this chapter. The County Code
Chapter is referred to in this chapter as the “Microenterpri se Home Kitchen Operations Ordinance,” and one copy is on file in the office of the city clerk.

B. Permit – License.

1. No person shall operate a MEHKO in the city without
holding a valid operating permit issued by the County
of San Diego Department of Environmental Health and

Page 4 of 4 ends

Quality ("DEHQ"). Application for a permit shall be
made upon a form issued by the DEHQ and shall be
accompanied by any fees established.

2. No person shall operate a MEHKO without holding a
valid b usiness license as required by C hapters 5.04
and 5.08 of this code.

C. No person shall operate a MEHKO in the city so as to create a nuisance as defined in section 1.16.025 of C hapter 1.16 of this code.

D. Commercial grade equipment and/or appliances not intended for residential building s shall require applicable permits for construction and installation from the City.

Section 7. This ordinance shall go into effect thirty (30) days following its passage and adoption.

03/22/22 CC Agenda – 1st Reading
04/12/22 CC Agenda – 2nd Reading

Ord – Amend ECMC Chapter 1.16 & Title 17 Regulating MEHKOs 030122

PLANNING COMMISSION RESOLUTION NO. 11059

A RESOLUTION RECOMMENDING CITY COUNCIL APPROVAL OF
ZONING CODE AMENDMENT NO. 2022-0001, AN AMENDMENT TO
TITLE 1 AND TITLE 17 OF THE EL CAJON MUNICIPAL CODE FOR MICROENTERPRISE HOME KITCHEN OPERATIONS - MEHKO.

WHEREAS, on January 25, 2022, the City Council directed staff to initiate a Zoning Code amendment to incorporate Microenterprise Home Kitchen Operations (MEHKO) performance standards into the Municipal Code; and,
WHEREAS, on February 25, 2022, an ordinance adopted by the County of San Diego Board of Supervisors became effective, thereby allowing MEHKOs to operate within the City of El Cajon; and,
WHEREAS, the El Cajon Planning Commission duly advertised and held a public hearing on March 1, 2022, to consider an amendment to the Zoning Code to add MEHKO performance and nuisance standards; and,
WHEREAS, at the public hearing the Planning Commission received evidence through public testimony and comment, in the form of verbal and written communications and reports prepared and presented to the Planning Commission, including (but not limited to) evidence such as the following:

A. The proposed Zoning Code Amendment is exempt from the provisions of the California Environmental Quality Act (CEQA) according to the common sense exemption (CEQA Guidelines, section 15061(b)(3)). The common sense exemption applies where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed amendment does not result in any development or changes to the physical environment and does not raise this project to a level of significance that warrants CEQA analysis. None of the exemption listed under CEQA Guidelines Section 15300.2 exists
B. The proposed changes to the Zoning Code further the goals of the General Plan by maintaining the quality of residential neighborhoods. Further, pursuant to Goal 10, the city "shall periodically revise its regulatory codes, ordinances and policies so that they may reflect current, upgraded standards of development and performance." The proposed Zoning Code changes will clarify MEHKO Planning Commission Resolution No. 11059
performance and nuisance standards and facilitate their consistent and objective application.

C. The proposed zoning code amendment is applicable citywide. No zone changes are proposed as part of this project, and thus the proposed changes do not conflict with specific plans.

D. The proposed Zoning Code amendment is applicable citywide and is not property-specific. Further, the proposed changes provide clarity, consistency, and objective standards for MEHKOs to the benefit of both MEHKO operators and residents and thus advances the general welfare of residential neighborhoods within the City.

WHEREAS, after considering such evidence and facts the Planning Commission did consider Zoning Code Amendment No. 2022-0001 as presented at its meeting; and WHEREAS, the residential land use tables have been updated to permit MEHKOs in residential zones and reference performance and nuisance standards in Sections

1.16.025 and 17.225.250 of the El Cajon Municipal Code.

NOW, THEREFORE, BE IT RESOLVED by the El Cajon Planning Commission as follows:

Section 1. That the foregoing recitals are true and correct, and are findings of fact of the El Cajon Planning Commission in regard to Zoning Code Amendment No. 2022- 0001.

Section 2. That based upon said findings of fact, the El Cajon Planning Commission hereby RECOMMENDS City Council APPROVAL of Zoning Code Amendment No. 2022-0001 included as Exhibit A.
{The remainder of this page is intentionally blank}.
2 of 3
Planning Commission Resolution No. 11059
PASSED AND ADOPTED by the El Cajon Planning Com.mission at a regular meeting held March 1, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

CIRCO, MROZ, POLLACK-RUDE, SOTTILE, VALLES
NONE
NONE

Page 3 of 3 ends

Rev. 03/09/2022 1
County of San Diego

DEPARTMENT OF ENVIRONMENTAL HEALTH AND QUALITY

FOOD AND HOUSING DIVISION
P.O. BOX 129261, SAN DIEGO, CA 92112-9261
P h o n e : (8 5 8 ) 5 0 5-6 9 00 | Fax: ( 85 8 ) 99 9 -89 20 | www.sdcdehq.org Microenterprise Home Kitchen Operation (MEHKO) FAQs
General Info

1. What does the new law do?
The new law establishes a “microenterprise home kitchen operation” , also referred to as MEHKO , as a new type of retail food facility to be operated by a resident in a private home. The law requires a County to either allow or not allow MEHKOs in their jurisdiction , and the San Diego County Board of Supervisors has author ized a two-year temporary pilot program allowing MEHKOs to operate countywide. The Department of Environmental Health and Quality, Food and Housing Division (DEHQ -FHD) is the local enforcement agency responsible for issuing operating permits to MEHKOs pur suant to California Retail Food Code (CRFC) requirements and ensuring operational compliance.

2. When does the new law go into effect?
The new law was effective January 1, 2019. However, the new law gives the county “full discretion” to authorize the MEHKOs in their jurisdiction . With the recent authorization of MEHKOs within San Diego County, MEHKO operators will be able to submit their application packets to DEHQ -FHD starting on February 25, 2022.

3. What is a Microenterprise Home Kitchen Operation or MEHKO? A MEHKO is a type of food service, like a mini restaurant, that is operated by a resident in a private home where food is stored, handled, and prepared that may be served to customers. Food must be prepared the day of service and can be eaten onsite or be delivered to the customer by the operator. Food may also be sold through an internet website or a phone-based mobile app belonging to an Internet Food Service Intermediary, but delivery must be by the MEHKOs operator or an employee of the MEHKOs facility. Food products may not be sold to a wholesale or retail facility. Third party delivery apps such as UberEats, Postmates, or GrubHub , etc., cannot be used by a MEHKO unless as provided for in CRFC Section 114367.5.

A MEHKO does not include either of the following:
• A catering operation, as defined in CRFC Section 113739.1. • A cottage food operation, as defined in CRFC Section 113758.

4. Who is the “local enforcement agency” for MEHKOs in the San Diego region? The local enforcement agency for retail food facilities, including MEHKOs, in the San Diego region is the County of San Diego Department of Environmental Health and Quality (DEHQ).

5. What is meant by “private home”?
“Private home” means a dwelling, including an apartment or other leased space, where individuals reside.

The MEHKO must be conducted within the primary residence. A MEHKO owner cannot have more than one primary residence, and s econd homes, vacation homes, or motor homes DO NOT qualify as a MEHKO.

6. If a person is renting a private residence/apartment or lives in a Homeowner’s Association (HOA), can they still operate a MEHKO?
A person must check their lease agreement to see if there are any restrictions to operating a home-based business out of the residence/apartment. If you have a n HOA, it is advised that you make sure that a MEHKO is allowed by your HOA before applying for a MEHKO health permit.

2 7. What is the difference between a MEHKO and a Cottage Food Operation (CFO)? A CFO is restricted to preparing and selling only prepackaged, properly labeled, non-potentially hazardous foods that have been approved by the California Department of Public Health (CDPH) (https://www.cdph.ca.gov/Programs/CEH/DFDCS/CDPH%20Document%20Library/FDB/FoodSafetyProg ram/CottageFood/ApprovedCottageFoodsList.pdf), which may be sold directly or indirectly to the consumer. CFOs may not allow on -site food consumption. A MEHKO is able to prepare and serve potentially hazardous foods and are able to provide onsite dining, pick -up, or delivery options to their customers.

8. Can a person operate both a CFO and a MEHKO in their residence? No, the law does not allow a CFO and a MEHKO in the same residence. The definition of a MEHKO does not include a CFO as provided for in CRFC Section 113825(b).

9. Can a person operate multiple CFOs or multiple MEHKOs in their residence? No. A cottage food operator is an individual who operates a cottage food operation in his or her private home and is the owner (CRFC Section 113758). A MEHKO is a food facility that is operated by a resident in a private home where food is stored, handled and prepared (CRFC Section 113825). Both a CFO and MEHKO have limit ations for the gross dollar amount allowed, number of employees, type of operation, allowed foods, etc. in a single residence. The law does not allow limits to be aggregated by multiple operations in the same residence.

10. Are multiple people living in the s ame residence allowed to each operate a CFO or MEHKO in that residence?
No. See Questions 8 and 9 above. There can only be one home kitchen operation (CFO or MEHKO) per residence.

11. What constitutes a meal?
While a meal is not defined in the California Retail Food Code, it should be sufficient in quantity to constitute a main course. This guideline is consistent with definition of a meal established by Alcohol Beverage Control (ABC) as part of their permitting process. Baked goods, condiments, sauces, or beverages are not considered a full meal.

Application Process

12. Is a permit required to operate a MEHKO?
Yes, a health permit is required from the County of San Diego Department of Environmental Health and Quality (DEHQ), Food and Housing Division, prior to operating.

13. How does a person who wants to operate a MEHKO obtain a permit from DEHQ? In order to obtain a health permit, a person (the operator) must complete a permit application package that includes a health permit application, a “Standard Operating Procedures” form, the proposed menu, submit their Food Safety Manager Certificate, and a full panel of water testing results (if on a private wel l), and pay the permit fee. Once the application and procedures are reviewed and approved by DEH Q, an initial inspection will be scheduled and conducted at the private residence to verify compliance with state law.

Once compliance is verified, the permit will be issued. Application packet s can be picked up at the Department of Environmental Health and Quality Office, located at 5500 Overland Ave, Suite 170 , San Diego, CA, 92123, or online at www.sdcdehq.org.

14. How long does the application process take for a MEHKO? The application process is determined by the level of detail and completeness of the application package.

The standard application process for M EHKOs is up to 20 calendar days if the application package is complete and the level of detail in the operational procedures is included to demonstrate compliance with the law. If the application must be sent back for revisions an additional 10 calendar da ys for review may be added.
3 15. Is approval from the FHD Plan Check Unit required prior to obtaining a MEHKO permit? Plan check approval is not required prior to obtaining a MEHKO permit. However, if any remodel work is to be done at the residence to support the MEHKO, operators must contact their local Building Department to determine what, if any, approvals will be needed prior to starting construction.

16. What fees are associated with operating a MEHKO?
In order to operate a MEHKO , the initial health permit fee will n eed to be paid at the time of application , and then the operator will be responsible for paying their annual permit fee in each subsequent year.

Additional fees will be applied for an y justified complaint response as well as for reinspections that are needed to ensure compliance with the CRFC. For a list of current fees, please refer to the current fee schedule found at www.sdcdehq.org.

17. If an operator moves to a new residence, do they need to go through the application process again? Yes, DEHQ permits are non-transferable. If an operator moves to a new residence, they must go through the application process again.

18. How does a customer determine if a MEHKO has an appro ved permit? A MEHKO is required to display their permit, or a legible copy, during hours of operation. Customers can also visit www.SDFoodInfo.org to determine if a MEHKO has a valid permit.

Operational Requirements

19. Does a person need any special training or certification to operate a MEHKO ? The operator of the MEHKO must successfully pass an approved and accredited food safety manager course prior to submitting an application, and any individual, other than the operator, who is involved with the preparation, storage, or service of food in a MEHKO must also obtain a food handler card from one of the schools approved by DEH Q within 10 days of the start of their employment . Proof of food safety certification and foodhandler training must be available on site. For a list of approved food safety manager and food handler courses, visit our website at www.sdcountyfoodhandlers.org.

20. Can a MEHKO have employees?
A MEHKO can have one full -time equivalent employee who is an individual employed by the MEHKO.

This does not include household or family members.

21. Does all of the food I use for my MEHKO need to be stored within my home? MEHKOs are able to store food items in areas that are not part of the internal habitable space (including garages, outdoor sheds, workshops etc.) if the food is stored inside a refrigerator or freezer with a properly closing door/lid.

22. Are kids and pets allowed to be in a MEHKO?
Yes, the law exempts a MEHKO from certain requirements of the CRFC. However, MEHKO facilities are required to keep all children and animals outside of the kitchen and dining areas during food service and preparation.

23. Are there any meal or sales limitations for MEHKOs? Yes, food preparation is limited to 30 meals per day or 60 individual meals per week and gross annual sales cannot exceed $50,000 as adjusted annually according to the California Consumer Price Index.

Records of all sales must be kept so that compliance with this limitation can be verified. A meal log is recommended to ensure the maximum number of meal s is not exceeded. The law also allows for DEHQ to limit the number of individual meals prepared if the physical space available for food preparation, food storage, and equipment storage is not adequate to support the number of meals being prepared.

24. Are there any restrictions to the type of food a MEHKO can serve? A MEHKO can prepare and sell food and beverages that have been approved by the local enforcement agency for same day on-site consumption or delivery with the exception of food or beverages that:
4 • Involve the production, service, or sale of raw milk or raw milk products • Involve the service or sale of raw oysters
• Involve food processes that require a Hazard Analysis Critical Control Point (HACCP) Plan such as:
o Smoking food as a method of food preservation
o Curing food
o Using food additives or adding components such as vinegar as a method of food preservation
o Operating a molluscan shellfish life support system display tank used to store and display shellfish that are offered for human consumption
o Using acidification or activity to prevent the growth of Clostridium botulinum o Packaging potentially hazardous food using a Reduced-Oxygen Packaging method o Preparing food by another method that is determined by the lead local agency to require a HACCP plan
• Involve the manufacturing of ice cream without a license from California Department of Food and Agriculture
• Contains alcohol without the appropriate liquor license from ABC

25. Can I keep leftovers to serve the next day, or prepare foods, including condiments , sauces, or beverages in advance?
Per the CRFC requirements, all food and beverages cannot be served the next day as part of the MEHKO operation. MEHKOs must prepare and serve all food and beverages on the same day and any leftovers must be properly disposed of at the end of the day.

26. Can I package food or beverages at my MEHKO?
Yes, a MEHKO may portion food into containers for same -day pick up or delivery service as long as it remains part of a meal . However, MEHKOs cannot use reduced -oxygen packaging (such as vacuum packing) or seal their foods in cans, bottles, or jars.

27. Can alcoholic beverages be sold from a MEHKO?
MEHKOs must have a valid license from the California Department of Alcoholic Beverage Control (ABC) in order to sell, serve, provide, or allow alcohol to be consumed on -site at the MEHKO. This includes allowing patrons to bring their own alcohol. Contact the ABC for more information: www.abc.ca.gov.

28. Can homegrown fruits and vegetables be used in a MEHKO? Yes, however care should be taken to ensure all produce is grown and handled using best management practices associated with a community food producer and all produce must be thoroughly washed prior to use.

29. Can a MEHKO add in cannabis, CBD, or Kava to the products they sell as part of their operation? Current restrictions imposed by the California Department of Public Health (CDPH) and the FDA prohibit a food facility from adding these ingredients into any food products that are offered to the public for consumption.

30. Can a MEHKO operate as a caterer?
Per the CRFC requirements, a MEHKO is prohibited from operating as a caterer or advertising any catering options as part of their permitted operation. Only permanent food facilities approved for operation, such as a restaurant, banquet facility , or other approved commercial kitchen , or operators who have obtained a Catering permit at an approved commercial kitchen, may operate as a caterer.

31. Can a MEHKO support a mobile food facility or act as a commissary for a food truck or temporary food facility ?
Per the CRFC requirements, MEHKOs may not sell to, operate as, or act as a commissary for a mobile food facility, such as a food truck, food cart, or a temporary food facility. 5 32. Can an operator of a MEHKO sell or give away food products at temporary events or at Certified Farmer’s Markets?
An operator of a MEHKO cannot sell food products at a temporary event or a Certified Farmer’s Market.

A MEHKO can only conduct food service directly to the public from the residential home or sold through an internet website or a phone based mobile app belonging to an Internet Food Service Intermediary.

Internet Food Service Intermediaries must be registered with the California Department of Public Health.

33. Can an operator of a MEHKO donate any leftover food? An operator of a MEHKO may donate food to a food bank or to any other nonprofit charitable organization as long as the food has been handled in compliance with food safety requirements. For more information on food donations, contact the DEHQ-FHD information specialist at (858) 505-6900, or one of the two San Diego Based Food Banks, Feeding San Diego at (858) 452 -3663, or the San Diego Food Bank at (858) 527-1419.

34. Where can I advertise my MEHKO business?
A MEHKO may advertise their business t hrough an internet food service intermediary or other online platform such as social media, as well as print media. The MEHKO must clearly identify San Diego County Department of Envir onmental Health and Quality, Food and Housing Division as the permit issuer, the permit number, and the following statement of “Made in a Home Kitchen” in a conspicuous font and location within the advertisement. A MEHKO is prohibited from posting signage to advertise the business in front of the residence.

Inspection Process

35. How often will a MEHKO be inspected?
All MEHKOs will receive one annual routine inspection. The first inspection will occur before a permit is issued to ensure compliance with the law.

36. Can a MEHKO be inspected more frequently?
State law prohibits conducting routine inspections of MEHKOs more than once a year. Additional inspections may be required in response to a complaint, if it is suspected that adulterated or otherwise unsafe food has been produced or served by the MEHKO, or if the MEHKO has violated CRFC requirements.

37. What areas of a private residence will be permitted and inspected as part of a MEHKO? The areas of a private residence t hat will be permitted and inspected as part of a MEHKO includes the kitchen, onsite customer eating area, food and equipment storage areas, bathroom (toilet room), janitorial or cleaning areas, and trash storage areas. Any utensils and equipment used in the MEHKO will also be inspected.

38. What records are required to be maintained for review by the local enforcement agency? An operator of a MEHKO must maintain the following documents onsite for review during an inspection:
• Written standard operating procedures that include a menu and hours of operation • A valid permit issued by DEHQ, or a legible copy of the valid permit, must be displayed onsite at all times when the MEHKO is in operation
• A copy of a valid driver’s license of the person delivering food on behalf of the MEHKO • A copy of the most recent DEHQ inspection report
• Records of all annual receipts from the sales of food and meal logs

39. Why isn’t a letter grade posted at a MEHKO like it is at a permanent food facility or a mobile food facility?
The law exempts a MEHKO from any local grading system. Their permit to operate must be retained on site, and on display, during hours of operation . However, just like permanent food facilities and mobile 6 food facilities, inspection report data and violation info rmation relating to any inspections conducted at a permitted MEHKO can be found at www.SDFoodInfo.org.

Equipment Requirements

40. Is commercial grade equipment required in a MEHKO?
No, commercial equipment/appliances are not required as long as the equipment/appliances used in a MEHKO are kept clean, stored in a sanitary manner, and are in good working order.

41. Can a MEHKO use an open-air barbecue or an outdoor wood-burning oven? Yes, a MEHKO may use an open-air barbecue or an outdoor wood-burning oven as long as the barbecue or wood-burning oven is:
• Operated on the same premises and is within reasonable proximity to the MEHKO • Does not have access to by the public
• Is not in a location that constitutes a fire hazard
• Meets the requirements of CRFC Section 114143

42. Are restrooms required to be available for MEHKO customers? Yes, clean toilet facilities, in good condition, and properly stocked with warm water, dispensable soap, and single-use paper towels shall be available for the MEHKO operator, food handlers, and any employees at all times. If the MEHKO allows customers to consume food or beverages on site, the MEHKO must provide a restroom for those customers to use.

Zoning

43. If there are complaints about odors, traffic, parking, and/or excessive noise, what agency should be notified?
Any complaints involving nuisance concerns can be reported directly to the local city’s Code Enforcement Department, or for MEHKOs in the unincorporated area s, to the County of San Diego Department of Planning & Development Services, Code Enforcement Program.

44. Are there any special requirements regarding a private residential water well? An approved source of potable water is required for all home kitchen operations. If the water will be provided by a regulated water district or small water system where water quality analysis is performed on a routine basis to ensure the water supply meets minimum bacterial and chemical standar ds, no further action is necessary. If the water will be provided by a private well, initial and annual testing will be required. For initial applications, a full panel of testing (bacteria, metals, nitrates) results will need to be submitted as part of the MEHKO application. At the time of an annual permit renewal, only bacteriological testing results will need to be submitted.

If testing is needed, requirements and laboratory options can be found at:
https://www.sandiegocounty.gov/content/dam/sdc/deh/fhd/food/pdf/homekitchenpotablewater.pdf A list of approved water sample providers can be found at:
https://www.sandiegocounty.gov/content/dam/sdc/deh/lwqd/Water%20Sampling%20Provider%20List.pdf

45. Are there special requirements for disposing of fats, oils or grease that are produced in a MEHKO? Fats, oils and grease (sometimes known as FOG) are produced when cooking foods that contain fat, such as meat or dairy products, or are prepared using fat (for baking, sautéing, marinating, frying, etc.). Th ey can cause blockages of residential and community plumbing and sewers and can result in sewage backups and overflows both inside and outside of residences. Please do not dispose of fats, oils and grease down the drain. For more information about how to properly dispose of fats, oils and grease, please contact your sewer agency or local city code enforcement for any additional restrictions on the disposal of fats, oils or grease.

46. Are grease traps required for MEHKOs?
State law (California Retail Food Code) prohibits requiring MEHKOs to install grease traps. Please see Question 45 above for proper disposal of fats, oils and grease.

Rev. 2/2/22 7
For additional information, please visit
the Department of Environmental Health and Quality’s webpage at: http://www.sdcdehq.org If you have any questions that have not been answered in these FAQs, or if additional clarification is needed, please contact the DEHQ-FHD Information Specialist at (858) 505-6900 or by email at [email protected].

SENATE BILL No. 972
Introduced by Senator Gonzalez
(Principal coauthor: Assembly Member Carrillo)
(Coauthors: Senators Durazo and Rubio)
February 10, 2022
An act to amend Sections 113758, 113818, 113825, 113831, 113868, 113947.1, 114069, 114094, 114094.5, 114130, 114217, 114276, 114295, 114297, 114313, 114314, 114315, 114380, and 114381 of, to add Sections 113814.1 and 114289.1 to, to repeal Sections 113947.6 and 114379.50 of, and to repeal and add Section 114395 of, the Health and Safety Code, relating to retail food.
legislative counsel’s digest
SB 972, as introduced, Gonzalez. California Retail Food Code. (1) Existing law, the California Retail Food Code, establishes uniform health and sanitation standards for, and provides for regulation by the State Department of Public Health of, retail food facilities and requires local health agencies to enforce these pro visions. Existing la w, for purposes of the code, defines a “cottage food operation” as an enterprise that has no more than a specified amount in gross annual sales, is operated by a cottage food operator, and has no more than 1 full-time employee within the re gistered or permitted area of a pri vate home where the food products are prepared and packaged.

This bill w ould remo ve the gross annual sales limitation in the definition of “cottage food operation.” The bill would also make various other changes to the cottage food operation requirements, including authorizing the sale of the cottage food product at a mobile food facility owned by the cottage food operator.
(2) The California Retail F ood Code defines “limited food preparation” as food preparation that is restricted to specified activities,

99 including dispensing or portioning of nonpotentially hazardous food, slicing and chopping of food on a heated cooking surf ace during the cooking process, and holding, portioning, and dispensing foods that are prepared at a satellite food service or catering operation.

This bill would include in the definition of “limited food preparation” dispensing and portioning for immediate service to a customer a food that has been temperature controlled until immediately prior to portioning or dispensing, slicing and chopping of nonpotentially hazardous food that has been w ashed at an appro ved facility, hot and cold holding of food pre viously prepared at an appro ved facility, and reheating of food previously prepared at an approved food facility and stored at the approved temperatures.
(3) The California Retail Food Code defines “mobile food facility” and regulates what types of food may be pro vided at a mobile food facility. The code requires mobile food facilities to meet specified health and safety standards, including access to warewashing sinks, restrooms, and handwashing facilities and required quantities of potable water.

This bill would create the category of “compact mobile food facility,” a subtype of mobile food facility, and would define it as a nonpermanent food facility that operates from an individual or from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance. The bill w ould exempt a mobile food f acility that sells only prepackaged, nonpotentially hazardous foods or whole raw fruits or vegetables from the California Retail F ood Code. The bill w ould authorize the department to exempt mobile food facilities from specified provisions of the code, including potable w ater and restroom requirements, if the department determines that the mobile food facility has access to sufficient facilities for those purposes in another manner, as specified. The bill w ould exempt a compact mobile food f acility from certain additional provisions of the code, including a requirement to ha ve an o wner or emplo yee who has passed an accredited and approved food safety certification examination. The bill would authorize the department to pre-appro ve a standard plan for a standardized or mass-produced facility intended to serve as a mobile food facility and would authorize a mobile food f acility to use that standardized or mass-produced facility without submitting plans for the individual unit.

The code requires a food f acility to have a valid permit to be open for business and authorizes the local enforcement agenc y to charge a fee for the permit or registration or related services. 99 — 2 — SB 972

This bill would authorize the local enforcement agency to reduce the fee for the permit, registration, or related service for an applicant seeking approval of a compact mobile food facility.
(4) Existing law provides for the regulation of microenterprise home kitchen operations and limits those operations to not serving more than 30 individual meals per day and not more than 60 individual meals per week and to no more than $50,000 in verifiable gross annual sales, as adjusted for inflation.

This bill would remove the meal and gross annual sales limitations on microenterprise home kitchen operations and would authorize those operations to sell directly to consumers from a mobile food facility. (5)
Under existing law, violation of the California Retail Food Code is a misdemeanor, unless otherwise specified.

This bill would remove all criminal penalties for a violation of the code and would, instead, authorize the imposition of administrative fines for violations.

V ote: majority.

Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 113758 of the Health and Safety Code line 2 is amended to read:
line 3 113758. (a) “Cottage food operation” means an enterprise that line 4 has no more than the amount in gross annual sales that is specified line 5 in this subdivision, is operated by a cottage food operator, operator, line 6 and has no more than one full-time equivalent cottage food line 7 employee, not including a family member or household member line 8 of the cottage food operator, within the registered or permitted line 9 area of a private home where the cottage food operator resides and line 10 where cottage food products are prepared or packaged for direct, line 11 indirect, or direct and indirect sale to consumers pursuant to this line 12 part. A “Class A” cottage food operation shall not have more than line 13 se venty-five thousand dollars ($75,000) in verifiable gross annual line 14 sales. A “Class B” cottage food operation shall not have more than line 15 one hundred fifty thousand dollars ($150,000) in v erifiable gross line 16 annual sales. The gross annual sales for a “Class A” or “Class B” line 17 cottage food operation shall be annually adjusted for inflation line 18 based on the California Consumer Price Inde x. A cottage food line 19 operation includes both of the following:
99 SB 972 — 3 —

line 1 (1)   A “Class A” cottage food operation, which is a cottage food line 2 operation that may engage only in direct sales of cottage food line 3 products from the cottage food operation or other direct sales line 4 venues described in paragraph (4) of subdivision (b). line 5 (2)   A “Class B” cottage food operation, which is a cottage food line 6 operation that may engage in both direct sales and indirect sales line 7 of cottage food products from the cottage food operation, from line 8 direct sales venues described in paragraph (4) of subdivision (b), line 9 from offsite events, or from a third-party retail food facility line 10 described in paragraph (5) of subdivision (b).
line 11 (b)   For purposes of this section, the following definitions shall line 12 apply:
line 13 (1)   “Cottage food employee” means an individual, paid or line 14 volunteer, who is involved in the preparation, packaging, handling, line 15 and storage of a cottage food product, or otherwise works for the line 16 cottage food operation. An employee does not include an line 17 immediate family member or household member of the cottage line 18 food operator, nor an individual who delivers a cottage food line 19 product.
line 20 (2)   “Cottage food operator” means an individual who operates line 21 a cottage food operation in their private home and is the owner of line 22 the cottage food operation.
line 23 (3)   “Cottage food products” means nonpotentially hazardous line 24 foods, including foods that are described in Section 114365.5 and line 25 114365.5, that are prepared for sale in the kitchen of a cottage food line 26 operation.
line 27 (4)   “Direct sale” means a transaction within the state between line 28 a cottage food operation and a consumer, in which the consumer line 29 purchases the cottage food product directly from the cottage food line 30 operation. Direct sales include, but are not limited to, transactions line 31 at holiday bazaars or other temporary events, such as bake sales line 32 or food swaps, transactions at farm stands, certified farmers’ line 33 markets, or through community-supported agriculture line 34 subscriptions, transactions at a mobile food facility operated by line 35 a cottage food operator, transactions occurring in person in the line 36 cottage food operation, and transactions made via the phone, line 37 internet, or any other digital method. A direct sale may be fulfilled line 38 in person, via mail delivery, or using any other third-party delivery line 39 service.
99 — 4 — SB 972

line 1 (5)   “Indirect sale” means a transaction within the state between line 2 a cottage food operation, a third-party retailer, and a consumer, in line 3 which the consumer purchases cottage food products made by the line 4 cottage food operation from a third-party retailer that holds a valid line 5 permit issued pursuant to Section 114381. Indirect sales include, line 6 but are not limited to, sales made to retail shops or to retail food line 7 facilities where food may be immediately consumed on the line 8 premises. An indirect sale may be fulfilled in person, via mail line 9 delivery, or using any other third-party delivery service. line 10 (6)   “Private home” means a dwelling, including an apartment line 11 or other leased space, where individuals reside. line 12 (7)  “Registered or permitted area” means the portion of a private line 13 home that contains the private home’s kitchen used for the line 14 preparation, packaging, storage, or handling of cottage food line 15 products and related ingredients or equipment, or both, and attached line 16 rooms within the home that are used exclusively for storage. line 17 SEC. 2. Section 113814.1 is added to the Health and Safety line 18 Code , to read:
line 19 113814.1. “Integral” means equipment that is either line 20 permanently attached to the primary unit or equipment that is line 21 securely fastened to the primary unit by means that would prevent line 22 unintentional removal. Equipment may be considered integral line 23 despite being portable or otherwise removable for cleaning, line 24 maintenance, or as part of its regular function. line 25 SEC. 3. Section 113818 of the Health and Safety Code is line 26 amended to read:
line 27 113818. (a)  “Limited food preparation” means food preparation line 28 that is restricted to one or more of the following:
line 29 (1)   Heating, frying, baking, roasting, popping, shaving of ice, line 30 blending, steaming or boiling of hot dogs, or assembly of line 31 nonprepackaged food.
line 32 (2)  Dispensing and portioning of nonpotentially hazardous food. line 33 food or dispensing and portioning for immediate service to a line 34 customer of food that has been temperature controlled until line 35 immediately prior to portioning or dispensing.
line 36 (3)  Holding, portioning, and dispensing of any foods that are line 37 prepared for satellite food service by the onsite permanent food line 38 facility or prepackaged by another approved source. line 39 (4)  Holding, portioning, and dispensing of any foods that are line 40 prepared by a catering operation.
99 SB 972 — 5 —

----
line 1 (5)   Slicing and chopping of nonpotentially hazardous food that line 2 has been washed at an approved facility or slicing and chopping line 3 of food on a heated cooking surface during the cooking process. line 4 (6)   Cooking and seasoning to order.
line 5 (7)  Juicing or preparing beverages that are for immediate service, line 6 in response to an individual consumer order, that do not contain line 7 frozen milk products.
line 8 (8)  Hot and cold holding of food that was previously prepared line 9 at an approved food facility.
line 10 (9)  Reheating of food if it was previously prepared at an line 11 approved food facility and stored at temperatures required by this line 12 chapter.
line 13 (b)  “Limited food preparation” does not include any of the line 14 following:
line 15 (1)  Slicing and chopping potentially hazardous food unless it line 16 is on the heated cooking surface.
line 17 (2)   Thawing.
line 18 (3)   Cooling of cooked, potentially hazardous food. line 19 (4)   Grinding raw ingredients or potentially hazardous food. line 20 (5)  Reheating of potentially hazardous foods for hot holding, line 21 e xcept for steamed or boiled hot dogs and tamales in the original, line 22 inedible wrapper .
line 23 (6)  Except as authorized in paragraph (3) of subdivision (a), hot line 24 holding of nonprepackaged, potentially hazardous food, e xcept line 25 for roasting corn on the cob, steamed or boiled hot dogs, and line 26 tamales in the original, inedible wrapper .
line 27 (7)
line 28 (5)  Washing of foods.
line 29 (8)
line 30 (6)  Cooking of potentially hazardous foods for later use. line 31 (9)
line 32 (7)  Handling, manufacturing, freezing, processing, or packaging line 33 of milk, milk products, or products resembling milk products line 34 subject to licensing under Division 15 (commencing with Section line 35 32501) of the Food and Agricultural Code.
line 36 SEC. 4. Section 113825 of the Health and Safety Code is line 37 amended to read:
line 38 113825. (a)  “Microenterprise home kitchen operation” means line 39 a food facility that is operated by a resident in a private home 99 — 6 — SB 972

line 1 where food is stored, handled, and prepared for, and may be served line 2 to, consumers, and that meets all of the following requirements:
line 3 (1)   The operation has no more than one full-time equivalent line 4 food employee, not including a family member or household line 5 member.
line 6 (2)   Food is prepared, cooked, and served on the same day. line 7 (3)  Food is consumed onsite at the microenterprise home kitchen line 8 operation or offsite if the food is picked up by the consumer line 9 consumer, served from a mobile food facility, or delivered within line 10 a safe time period based on holding equipment capacity. line 11 (4)   Food preparation does not involve processes that require a line 12 HACCP plan, as specified in Section 114419, or the production, line 13 service, or sale of raw milk or raw milk products, as defined in line 14 Section 11380 of Title 17 of the California Code of Regulations. line 15 (5)   The service and sale of raw oysters is prohibited. line 16 (6)   The production, manufacturing, processing, freezing, or line 17 packaging of milk or milk products, including, but not limited to, line 18 cheese, ice cream, yogurt, sour cream, and butter, is prohibited. line 19 (7)  Food preparation is limited to no more than 30 indi vidual line 20 meals per day , or the approximate equivalent of meal components line 21 when sold separately , and no more than 60 indi vidual meals, or line 22 the approximate equi valent of meal components when sold line 23 separately , per week. The local enforcement agency may decrease line 24 the limit of the number of individual meals prepared based on food line 25 preparation capacity of the operation, b ut shall not, in an y case, line 26 increase the limit of the number of indi vidual meals prepared. line 27 (8)  The operation has no more than fifty thousand dollars line 28 ($50,000) in v erifiable gross annual sales, as adjusted annually for line 29 inflation based on the California Consumer Price Inde x. line 30 (9)
line 31 (7)  The operation only sells food directly to consumers and not line 32 to any a wholesaler or retailer. For purposes of this paragraph, the line 33 sale of food prepared in a microenterprise home kitchen operation line 34 through the internet website or mobile application of an Internet line 35 internet food service intermediary, as defined in Section 114367.6, line 36 or directly from a mobile food facility operated by the line 37 microenterprise home kitchen operation permitholder is a direct line 38 sale to consumers. An operation that sells food through the internet line 39 website or mobile application of an Internet internet food service 99 SB 972 — 7 —

line 1 intermediary shall consent to the disclosures specified in paragraphs line 2 (6) and (7) of subdivision (a) of Section 114367.6. line 3 (b)  “Microenterprise home kitchen operation” does not include line 4 either of the following:
line 5 (1)   A catering operation.
line 6 (2)   A cottage food operation, as defined in Section 113758. line 7 (c)  For purposes of this section, “resident of a private home” line 8 means an individual who resides in the private home when not line 9 elsewhere for labor or other special or temporary purpose. line 10 SEC. 5. Section 113831 of the Health and Safety Code is line 11 amended to read:
line 12 113831. (a)  “Compact mobile food facility” means a line 13 nonpermanent food facility that operates from an individual or line 14 from a pushcart, stand, display, pedal-driven cart, wagon, line 15 showcase, rack, or other nonmotorized conveyance. line 16 (a)
line 17 (b)  “Mobile food facility” means an y a vehicle used in line 18 conjunction with a commissary or other permanent food facility line 19 upon which food is sold or distributed at retail. “Mobile food line 20 facility” includes a compact mobile food facility. “Mobile food line 21 facility” does not include a “transporter” used to transport packaged line 22 food from a food facility, or other approved source to the consumer. line 23 (b)
line 24 (c)  “Single operating site mobile food facilities” means at least line 25 one, but not more than four, unenclosed mobile food facilities, and line 26 their auxiliary units, that operate adjacent to each other at a single line 27 location.
line 28 SEC. 6. Section 113868 of the Health and Safety Code is line 29 amended to read:
line 30 113868. “Portable” means equipment that is capable of being line 31 lifted and moved or has utility connections that are designed to be line 32 disconnected or of sufficient length to permit the unit to be moved line 33 for cleaning, and does not exceed 80 100 pounds (36kg) (46 kg) line 34 in weight. weight or is otherwise designed to be mobile or line 35 separately mobile.
line 36 SEC. 7. Section 113947.1 of the Health and Safety Code is line 37 amended to read:
line 38 113947.1. (a)  Food facilities that prepare, handle, or serve line 39 nonprepackaged potentially hazardous food, except temporary line 40 food facilities and compact mobile food facilities, shall have an 99 — 8 — SB 972

line 1 owner or employee who has successfully passed an approved and line 2 accredited food safety certification examination as specified in line 3 Sections 113947.2 and 113947.3. There shall be at least one food line 4 safety certified owner or employee at each food facility. No A line 5 certified person at a food facility may shall not serve at any other line 6 food facility as the person required to be certified pursuant to this line 7 subdivision. The certified owner or employee need not be present line 8 at the food facility during all hours of operation. line 9 (b)   Food facilities that are not subject to the requirements of line 10 subdivision (a) that prepare, handle, or serve nonprepackaged, line 11 nonpotentially hazardous foods, except temporary food facilities line 12 and compact mobile food facilities, shall do one of the following:
line 13 (1)  Have an owner or employee who has successfully passed line 14 an approved and accredited food safety certification examination line 15 as specified in Sections 113947.2 and 113947.3. line 16 (2)   Demonstrate to the enforcement officer that the employees line 17 have an adequate knowledge of food safety principles as they relate line 18 to the specific operation involved in their assigned duties. line 19 (c)  On and after July 1, 2007, temporary Temporary food line 20 facilities and compact mobile food facilities that prepare, handle, line 21 or serve nonprepackaged food shall have an owner or person in line 22 charge who can demonstrate to the enforcement officer that he or line 23 she has they have an adequate knowledge of food safety principles line 24 as they relate to the specific food facility operation. For the line 25 purposes of this subdivision, a compact mobile food facility that line 26 carries, or will carry, a written copy of its standard operating line 27 procedures approved by an enforcement agency is deemed to have line 28 adequate knowledge of food safety principles as they relate to the line 29 specific food facility operation.
line 30 (d)  (1)  For the purposes of this section, multiple contiguous line 31 food facilities permitted within the same site and under the same line 32 management, ownership, or control shall be deemed to be one food line 33 facility, notwithstanding the fact that the food facilities may operate line 34 under separate permits.
line 35 (2)  This subdivision shall not apply to the premises of a licensed line 36 winegrower or brandy manufacturer utilized for wine tastings line 37 conducted pursuant to Section 23356.1 of the Business and line 38 Professions Code of wine or brandy produced or bottled by, or line 39 produced and prepackaged for, that licensee when use is limited line 40 to wine tasting.
99 SB 972 — 9 —

line 1 (e)  A food facility that commences operation, changes line 2 ownership, or no longer has a certified owner or employee pursuant line 3 to this section shall have 60 days to comply with this subdivision. line 4 (f)  The responsibilities of a certified owner or employee at a line 5 food facility or an owner or person in charge of a temporary food line 6 facility described in subdivision (c) shall include the safety of food line 7 preparation and service, including ensuring that all employees who line 8 handle, or have responsibility for handling, nonprepackaged foods line 9 of any kind, have sufficient knowledge to ensure the safe line 10 preparation or service of the food, or both. The nature and extent line 11 of the knowledge that each employee is required to have may be line 12 tailored, as appropriate, to the employee’s duties related to food line 13 safety issues.
line 14 (g)  The food safety certificate issued pursuant to Section line 15 113947.3 shall be retained on file at the food facility at all times, line 16 and shall be made available for inspection by the enforcement line 17 officer.
line 18 (h)   Certified individuals shall be recertified every five years by line 19 passing an approved and accredited food safety certification line 20 examination.
line 21 (i)   A food safety program that was not in effect prior to January line 22 1, 1999, shall not be enacted, adopted, implemented, or enforced, line 23 unless the program fully conforms to the requirements of this part. line 24 SEC. 8. Section 113947.6 of the Health and Safety Code is line 25 repealed.
line 26 113947.6. Notwithstanding Section 114395, a violation of any line 27 pro vision in Sections 113947.1 to 113947.5, inclusi ve, shall line 28 constitute an infraction punishable by a fine of not more than one line 29 hundred dollars ($100) for each day of operation in violation. line 30 SEC. 9. Section 114069 of the Health and Safety Code is line 31 amended to read:
line 32 114069. (a)   Only prepackaged nonpotentially hazardous food line 33 or uncut produce may be displayed or sold outdoors by a food line 34 facility if all of the following conditions are satisfied:
line 35 (a)
line 36 (1)  Outdoor displays have overhead protection that extends over line 37 all food items.
line 38 (b)
99 — 10 — SB 972

line 1 (2)  Food items from the outdoor display are stored inside the line 2 fully enclosed food facility at all times other than during business line 3 hours.
line 4 (c)
line 5 (3)  Outdoor displays comply with Section 113980 and have line 6 been approved by the enforcement agency.
line 7 (d)
line 8 (4)  Outdoor displays are under the control of the permitholder line 9 of the fully enclosed food facility and are checked periodically on line 10 a regular basis.
line 11 (b)  Subdivision (a) does not apply to a compact mobile food line 12 facility. A compact mobile food facility may display or sell cut fruit line 13 and vegetables, uncut produce, and prepackaged nonpotentially line 14 hazardous food if the conditions in subdivision (a) are satisfied. line 15 SEC. 10. Section 114094 of the Health and Safety Code is line 16 amended to read:
line 17 114094. (a)  A food facility subject to Section 343(q)(5)(H) of line 18 Title 21 of the United States Code or subject to this section as it line 19 read on July 1, 2011, shall comply with the requirements of that line 20 section of the United States Code and the regulations adopted line 21 pursuant thereto.
line 22 (b)  Notwithstanding the Sherman Food, Drug, and Cosmetic line 23 Law (Part 5 (commencing with Section 109875) of Division 104), line 24 and to the extent permitted by federal law:
line 25 (1)  Enforcement of this section shall be made pursuant to Section line 26 113713.
line 27 (2)  (A)   A violation of this section is, notwithstanding Section line 28 114395, an infraction, is punishable by a an administrative fine line 29 of not less than fifty dollars ($50) nor more than five hundred line 30 dollars ($500). A second violation within a five-year period from line 31 a prior violation shall be punishable by a an administrative fine line 32 of not less than one hundred dollars ($100) nor more than one line 33 thousand dollars ($1,000). For a third or subsequent violation line 34 within a five-year period, the administrative fine shall be not less line 35 than two hundred fifty dollars ($250) nor more than two thousand line 36 five hundred dollars ($2,500). A food facility shall not be found line 37 to have committed a violation under this paragraph more than once line 38 during an inspection visit.
99 SB 972 — 11 —

line 1 (B)  Alternatively, the enforcement agenc y may assess a ci vil line 2 penalty of an amount that is no less than or greater than the line 3 amounts specified for fines in this paragraph.
line 4 (c)   Except for the civil penalties authorized by this section, this line 5 section shall not be construed to create or enhance any claim, right line 6 of action, or civil liability that did not exist under state law prior line 7 to January 1, 2009, or limit any claim, right of action, or civil line 8 liability that otherwise existed under state law prior to January 1, line 9 2009. The only enforcement mechanism of this section is the line 10 department or local enforcement agency, as set forth in Section line 11 113713.
line 12 (d)   This section shall become operative only on and after the line 13 compliance date specified in the federal regulation implementing line 14 Section 343(q)(5)(H) of Title 21 of the United States Code. line 15 SEC. 11. Section 114094.5 of the Health and Safety Code is line 16 amended to read:
line 17 114094.5. (a)  A retail food facility shall not sell or offer for line 18 sale after the “use by” date, infant formula or baby food that is line 19 required to have this date on its packaging pursuant to the federal line 20 act, as defined in Section 109930, and federal regulations adopted line 21 pursuant to the federal act, including, but not limited to, Section line 22 107.20 of Title 21 of the Code of Federal Regulations. line 23 (b)  Notwithstanding Section 114395, an y A retail food facility line 24 that violates this section is guilty of an infraction, punishable by line 25 a fine is subject to an administrative fine of not more than ten line 26 dollars ($10) per day for each item sold or offered for sale after line 27 the “use by” date. The fine administrative fine shall be calculated line 28 based upon the number of days past the “use by” date that the line 29 product is either found being offered for sale, or if the product is line 30 sold, the date of sale as established by evidence of the proof of line 31 purchase, including, but not limited to, a sales receipt. line 32 (c)  An enforcement agency may assess administrative penalties line 33 on a retail food f acility that violates this section in the amount of line 34 ten dollars ($10) per day for each item sold or of fered for sale, in line 35 addition to other penalties authorized by la w. line 36 (d)
line 37 (c)  For purposes of this section, the following definitions shall line 38 apply:
99 — 12 — SB 972

line 1 (1)   “Baby food” shall have the meaning given to “baby foods” line 2 in paragraph (c) of Section 407.81 of Title 40 of the Code of line 3 Federal Regulations.
line 4 (2)  “Infant formula” shall have the meaning given in subdivision line 5 (z) of Section 321 of Title 21 of the United States Code. line 6 SEC. 12. Section 114130 of the Health and Safety Code is line 7 amended to read:
line 8 114130. (a)  Equipment and utensils shall be designed and line 9 constructed to be durable and to retain their characteristic qualities line 10 under normal use conditions.
line 11 (b)  Except as specified in subdivision (c), all new and line 12 replacement food-related and utensil-related equipment shall be line 13 certified or classified for sanitation by an American National line 14 Standards Institute (ANSI) accredited certification program. In the line 15 absence of an applicable ANSI certified sanitation standard, line 16 food-related and utensil-related equipment shall be evaluated for line 17 approval by the enforcement agency.
line 18 (c)    Restricted food service facilities need not comply with line 19 subdivision (b), depending on the extent of the food service line 20 activities, and if the enforcement officer determines that the line 21 equipment meets the characteristics of subdivision (a). line 22 (d)   All new and replacement electrical appliances shall meet line 23 applicable Underwriters Laboratories standards for electrical line 24 equipment as determined by an ANSI American National Standards line 25 Institute (ANSI) accredited certification program. program or a line 26 certification program accredited by another accreditation body. line 27 (e)  Subdivision (b) does not apply to a compact mobile food line 28 facility if the enforcement agency determines that the equipment line 29 of the facility meets the characteristics described in subdivision line 30 (a).
line 31 SEC. 13. Section 114217 of the Health and Safety Code is line 32 amended to read:
line 33 114217. (a)  A potable water tank of sufficient capacity to line 34 furnish an adequate quantity of potable water for food preparation, line 35 warewashing, and handwashing purposes shall be provided for line 36 nonpermanent food facilities.
line 37 (b)  At least five gallons of water shall be provided exclusively line 38 for handwashing for each nonpermanent food facility. Any water line 39 Water need for other purposes shall be in addition to the five line 40 gallons for handwashing.
99 SB 972 — 13 —

line 1 (c)   Except as specified in subdivision (d), at least 25 gallons of line 2 water shall be provided for food preparation and warewashing. line 3 (d)   At least 15 gallons of water shall be provided for line 4 nonpermanent food facilities that conduct limited food preparation. line 5 (e)  The water delivery system shall deliver at least one gallon line 6 per minute to each sink basin.
line 7 (f)  An enforcement agency shall permit a mobile food facility line 8 to operate without providing its own supply of potable water if line 9 alternative supplies of water are available in the planned area of line 10 operation, including, but not limited to, public faucets, bottled line 11 water sales, or bottled water carried with the vendor but stored line 12 outside of the mobile food facility.
line 13 (g)  An enforcement agency shall permit a mobile food facility line 14 to operate with an integral water tank smaller than specified under line 15 subdivisions (b), (c), and (d) if the enforcement agency finds that line 16 the mobile food facility is operating in an area and manner that line 17 would allow for replenishment of the water supply as needed during line 18 operations.
line 19 SEC. 14. Section 114276 of the Health and Safety Code is line 20 amended to read:
line 21 114276. (a)  A permanent food facility shall provide clean line 22 toilet facilities in good repair for use by employees. line 23 (b)   (1)  A permanent food facility shall provide clean toilet line 24 facilities in good repair for consumers, guests, or invitees when line 25 there is onsite consumption of foods or when the food facility was line 26 constructed after July 1, 1984, and has more than 20,000 square line 27 feet of floor space.
line 28 (2)   Notwithstanding Section 113984.1, toilet facilities that are line 29 provided for use by consumers, guests, or invitees shall be in a line 30 location where consumers, guests, and invitees do not pass through line 31 food preparation, food storage, or utensil washing areas to reach line 32 the toilet facilities.
line 33 (3)   For purposes of this section, a building subject to paragraph line 34 (1) that has a food facility with more than 20,000 square feet of line 35 floor space shall provide at least one separate toilet facility for line 36 men and one separate toilet facility for women. line 37 (4)  For purposes of this section, the gas pump area of a service line 38 station that is maintained in conjunction with a food facility shall line 39 not be considered as property used in connection with the food 99 — 14 — SB 972

line 1 facility or be considered in determining the square footage of floor line 2 space of the food facility.
line 3 (c)  (1)  Toilet rooms shall be separated by well-fitted, line 4 self-closing doors that prevent the passage of flies, dust, or odors. line 5 (2)  Toilet room doors shall be kept closed except during cleaning line 6 and maintenance operations.
line 7 (d)   Handwashing facilities, in good repair, shall be provided as line 8 specified in Sections 113953 and 113953.3.
line 9 (e)   A city, county, or city and county may enact ordinances that line 10 are more restrictive than this section.
line 11 (f)   (1)  Except as provided in paragraph (1) of subdivision (b), line 12 a food facility that was constructed before January 1, 2004, that line 13 has been in continuous operation since January 1, 2004, and that line 14 provides space for the consumption of food on the premises shall line 15 either provide clean toilet facilities in good repair for consumers, line 16 guests, or invitees on property used in connection with, or in, the line 17 food facility or prominently post a sign within the food facility in line 18 a public area stating that toilet facilities are not provided. line 19 (2)  The first violation of paragraph (1) shall result in a warning. line 20 Subsequent violations shall constitute an infraction be punishable line 21 by a an administrative fine of not more than two hundred fifty line 22 dollars ($250).
line 23 (3)   The requirements of this section for toilet facilities that are line 24 accessible to consumers, guests, or invitees on the property may line 25 be satisfied by permitting access by those persons to the toilet and line 26 handwashing facilities that are required by this part. line 27 SEC. 15. Section 114289.1 is added to the Health and Safety line 28 Code , to read:
line 29 114289.1. Notwithstanding any other law, a mobile food facility line 30 that sells only prepackaged, nonpotentially hazardous foods or line 31 whole raw fruits or vegetables is exempt from the requirements line 32 of this part.
line 33 SEC. 16. Section 114295 of the Health and Safety Code is line 34 amended to read:
line 35 114295. (a)  Except as specified in subdivision (b), all mobile line 36 food facilities shall operate in conjunction with a commissary, line 37 mobile support unit, or other facility approved by the enforcement line 38 agency.
line 39 (b)   This section does not apply to mobile food facilities that line 40 operate at community e vents events, as defined in Section 113755 99 SB 972 — 15 —

line 1 113755, and that remain in a fixed position during food preparation line 2 and its hours of operation, if potable water and liquid waste line 3 disposal facilities are available to mobile food facilities requiring line 4 potable water.
line 5 (c)   (1)   Mobile food facilities shall be stored at or within a line 6 commissary or other location approved by the enforcement agency line 7 in order to have protection from unsanitary conditions. line 8 (2)  An enforcement agency shall approve the storage of compact line 9 mobile food facilities in the home of the operator or permitholder line 10 if the food facility is sanitized daily.
line 11 (d)  Mobile support units shall be operated from and stored at a line 12 designated commissary and shall be subject to permitting and plan line 13 review.
line 14 (e)   Notwithstanding any other provisions of this section, a line 15 mobile food facility that is engaged in food preparation, other than line 16 limited food preparation, as defined in Section 113818, shall not line 17 operate in conjunction with a mobile support unit. line 18 (f)  Notwithstanding any other provision of this section, a line 19 compact mobile food facility is not required to operate in line 20 conjunction with a commissary or mobile support unit if the line 21 permitholder operates the compact mobile food facility in line 22 conjunction with a licensed cottage food operation or line 23 microenterprise home kitchen operation.
line 24 SEC. 17. Section 114297 of the Health and Safety Code is line 25 amended to read:
line 26 114297. (a)  Mobile food facilities shall be cleaned and serviced line 27 at least once daily during an operating day.
line 28 (b)  Except as specified in subdivision (c), all mobile food line 29 facilities shall report to the commissary or other approved facility line 30 on a daily basis.
line 31 (c)  Mobile food facilities that are serviced by a mobile support line 32 unit and that do not report to a commissary on a daily basis shall line 33 be stored in a manner that protects the mobile food facility from line 34 contamination. contamination, which may include the home storage line 35 of the food facility. All food shall be stored at the commissary or line 36 other approved facility at the end of the operating day. Prepackaged line 37 nonpotentially hazardous food, whole fruits, and whole vegetables line 38 may be stored in the home prior to sale or preparation of that food line 39 in a compact mobile food facility.
99 — 16 — SB 972

line 1 (d)  Mobile support units shall report to a commissary or other line 2 approved facility for cleaning, servicing, and storage at least daily. line 3 SEC. 18. Section 114313 of the Health and Safety Code is line 4 amended to read:
line 5 114313. (a)  Except as specified in subdi visions (b) and (c), line 6 subdivision (b), a mobile food facility where nonprepackaged food line 7 is cooked, blended, or otherwise prepared shall provide a line 8 warewashing sink with at least three compartments with two line 9 integral metal drainboards.
line 10 (1)   The dimensions of each compartment shall be large enough line 11 to accommodate the cleaning of the largest utensil and either of line 12 the following:
line 13 (A)  At least 12 inches wide, 12 inches long, and 10 inches deep. line 14 (B)   At least 10 inches wide, 14 inches long, and 10 inches deep. line 15 (2)   Each drainboard shall be at least the size of one of the sink line 16 compartments. The drainboards shall be installed with at least line 17 one-eighth inch per foot slope toward the sink compartment, and line 18 fabricated with a minimum of one-half inch lip or rim to prevent line 19 the draining liquid from spilling onto the floor. line 20 (3)   The sink shall be equipped with a mixing faucet and shall line 21 be provided with a swivel spigot capable of servicing all sink line 22 compartments.
line 23 (b)  If all utensils and equipment of a mobile food f acility are line 24 w ashed and sanitized on a daily basis at the approved commissary line 25 or other appro ved food f acility, and the mobile food f acility line 26 pro vides and maintains an adequate supply of spare preparation line 27 and serving utensils in the mobile food facility as needed to replace line 28 those that become soiled or contaminated, then the mobile food line 29 facility shall not be required to provide a warewashing sink to only line 30 handle an y of the following:
line 31 (1)  Nonpotentially hazardous foods that do not require line 32 preparation other than heating, baking, popping, portioning, b ulk line 33 dispensing, assembly , or shaving of ice.
line 34 (2)  Steamed or boiled hot dogs.
line 35 (3)  Tamales in the original, inedible wrapper. line 36 (c)  An unenclosed
line 37 (b)  A mobile food facility that prepares potentially hazardous line 38 be verages for immediate service in response to an indi vidual line 39 consumer order is approved for limited food preparation shall do line 40 one of the following:
99 SB 972 — 17 —

line 1 (1)  Provide a three-compartment sink described in subdivision line 2 (a).
line 3 (2)
line 4 (1)  Provide at least one two-compartment sink that complies line 5 with subdivision (e) of Section 114099.3.
line 6 (3)
line 7 (2)  Provide a one-compartment sink with at least one integral line 8 metal drainboard, an adequate supply of spare preparation and line 9 serving utensils to replace those that become soiled or line 10 contaminated, and warewashing facilities that comply with line 11 subdivision (a) in reasonable proximity to, and readily accessible line 12 for use by, food employees at all times.
line 13 (3)  Maintain an adequate supply of spare preparation and line 14 serving utensils on the mobile food facility to ensure that utensils line 15 used for potentially hazardous foods are replaced with clean and line 16 sanitized utensils every four hours or as needed to replace those line 17 that become soiled or contaminated. A mobile food facility that line 18 complies with this paragraph is not required to provide a line 19 warewashing sink.
line 20 SEC. 19. Section 114314 of the Health and Safety Code is line 21 amended to read:
line 22 114314. (a)  Handwashing sinks and warewashing sinks for line 23 unenclosed mobile food facilities shall be an integral part of the line 24 primary unit or on an approved auxiliary conveyance that is used line 25 in conjunction with the mobile food facility.
line 26 (b)   Warewashing sinks for unenclosed mobile food facilities line 27 shall be equipped with overhead protection made of wood, canvas, line 28 or other materials that protect the sinks from bird and insect line 29 droppings, dust, precipitation, and other contaminants. line 30 (c)  A mobile food facility may satisfy the requirements of this line 31 section by demonstrating access to a permitted auxiliary line 32 conveyance containing the necessary handwashing and line 33 warewashing sinks. The auxiliary conveyance may be operated by line 34 the same or a different permitholder. An enforcement agency may line 35 permit an auxiliary conveyance to serve multiple mobile food line 36 facilities operating in close proximity to the auxiliary conveyance, line 37 as determined by the enforcement agency.
line 38 (d)  A compact mobile food facility may operate without an line 39 integral handwashing sink, auxiliary sink unit, or other line 40 handwashing facility if it is equipped with a supply of clean, 99 — 18 — SB 972

line 1 potable water, hand soap, a receptacle for waste water, and paper line 2 towels.
line 3 SEC. 20. Section 114315 of the Health and Safety Code is line 4 amended to read:
line 5 114315. (a) A mobile food facility shall be operated within line 6 200 feet travel distance of an approved and readily available toilet line 7 and handwashing facility, or as otherwise appro ved by the line 8 enforcement agenc y, and, if the mobile food facility has multiple line 9 employees or operators, may remain operable by a single employee line 10 or operator so that employees may alternate use of a restroom, to line 11 ensure that restroom facilities are available to facility employees line 12 whenever the mobile food facility is stopped to conduct business line 13 for more than a one-hour period. An enforcement agency may line 14 waive this requirement for a mobile food facility if it finds that the line 15 operations of the mobile food facility provide for adequate access line 16 to restroom facilities in an alternative manner. line 17 (b) This section does not limit the authority of a local governing line 18 body to adopt, by ordinance or resolution, additional requirements line 19 for the public safety, including reasonable time, place, and manner line 20 restrictions pursuant to its authority under subdivision (b) of line 21 Section 22455 of the Vehicle Code.
line 22 SEC. 21. Section 114379.50 of the Health and Safety Code is line 23 repealed.
line 24 114379.50. A violation of this chapter is, notwithstanding line 25 Section 114395, an infraction, pro vided, however, that the first line 26 violation shall result in a notice of violation. A second violation line 27 within a fiv e-year period from the notice of violation shall be line 28 punishable by a fine of not more than tw o hundred fifty dollars line 29 ($250). F or a third or subsequent violation within a fiv e-year line 30 period, the fine shall be not more than fiv e hundred dollars ($500). line 31 A restaurant shall not be found to have committed a violation under line 32 this chapter more than once during an inspection visit. line 33 SEC. 22. Section 114380 of the Health and Safety Code is line 34 amended to read:
line 35 114380. (a) A person proposing to build or remodel a food line 36 facility shall submit complete, easily readable plans drawn to scale, line 37 and specifications to the enforcement agency for review, and shall line 38 receive plan approval before starting any new construction or line 39 remodeling of a facility for use as a retail food facility. 99 SB 972 — 19 —

line 1 (b)  Plans and specifications may also be required by the line 2 enforcement agenc y if the agenc y determines that the y are line 3 necessary to ensure compliance with the requirements of this part, line 4 including, b ut not limited to, a menu change or change in the line 5 facility’s method of operation.
line 6 (c)  (1)  All new school food f acilities or school food f acilities line 7 that undergo modernization or remodeling shall comply with all line 8 structural requirements of this part. Upon submission of plans by line 9 a public school authority, the Division of the State Architect and line 10 the local enforcement agenc y shall re view and appro ve all ne w line 11 and remodeled school facilities for compliance with all applicable line 12 requirements.
line 13 (2)  Notwithstanding subdivision (a), the Office of State wide line 14 Health Planning and De velopment (OSHPD) shall maintain its line 15 primary jurisdiction o ver licensed skilled nursing f acilities, and line 16 when new construction, modernization, or remodeling must be line 17 undertaken to repair existing systems or to keep up the course of line 18 normal or routine maintenance, the f acility shall complete a line 19 building application and plan check process as required by OSHPD. line 20 Approval of the plans by OSHPD shall be deemed compliance line 21 with the plan appro val process required by the local county line 22 enforcement agency described in this section.
line 23 (3)  Except when a determination is made by the enforcement line 24 agency that the nonconforming structural conditions pose a public line 25 health hazard, existing public and private school cafeterias, limited line 26 service charitable feeding operation facilities, and licensed health line 27 care facilities shall be deemed to be in compliance with this part line 28 pending replacement or renovation.
line 29 (d)  Except when a determination is made by the enforcement line 30 agency that the nonconforming structural conditions pose a public line 31 health hazard, existing food facilities that were in compliance with line 32 the la w in ef fect on June 30, 2007, shall be deemed to be in line 33 compliance with the law pending replacement or renovation. If a line 34 determination is made by the enforcement agency that a structural line 35 condition poses a public health hazard, the food f acility shall line 36 remedy the deficienc y to the satisf action of the enforcement line 37 agency.
line 38 (e)  The plans shall be approved or rejected within 20 working line 39 days after receipt by the enforcement agenc y and the applicant line 40 shall be notified of the decision. Unless the plans are approved or 99 — 20 — SB 972

line 1 rejected within 20 working days, they shall be deemed approved. line 2 The building department shall not issue a building permit for a line 3 food facility until after it has received plan approval by the line 4 enforcement agency. This section does not require that plans or line 5 specifications be prepared by someone other than the applicant. line 6 (f)  Upon receipt of complete, easily readable plans drawn to line 7 scale, and specifications satisfactory to the enforcement agency, line 8 an enforcement agency may preapprove a standard plan for a line 9 standardized or mass-produced facility intended to serve as a line 10 mobile food facility. The manufacturer of the standardized facility line 11 may be required to affix a sticker or decal to each individual unit line 12 certifying that the unit was built in accordance with the line 13 preapproved blueprints. A person proposing to operate a mobile line 14 food facility who has acquired a facility for which the plans have line 15 already been approved is not required to submit plans for the line 16 individual unit, but instead the plans shall be deemed approved. line 17 The permit application for a mobile food facility utilizing a line 18 preapproved facility shall include a certification that the applicant line 19 has not substantially altered the facility from the preapproved line 20 plans.
line 21 (g)  The repair of equipment or integral fixtures on a mobile line 22 food facility or the replacement of equipment and fixtures with line 23 substantially similar equipment or fixtures is not a remodel, and line 24 the repair or replacement of equipment or fixtures does not require line 25 the submission of plans to an enforcement agency. line 26 SEC. 23. Section 114381 of the Health and Safety Code is line 27 amended to read:
line 28 114381. (a)  A food facility shall not be open for business line 29 without a valid permit.
line 30 (b)   A permit shall be issued by the enforcement agency when line 31 investigation has determined that the proposed facility and its line 32 method of operation meets the specifications of the approved plans line 33 or conforms to the requirements of this part.
line 34 (c)   A permit, once issued, is nontransferable. A permit shall be line 35 valid only for the person, location, type of food sales, or line 36 distribution activity and, unless suspended or revoked for cause, line 37 for the time period indicated.
line 38 (d)  Any fee for the permit or registration or related services, line 39 including, but not limited to, the expenses of inspecting and line 40 impounding an y a utensil suspected of releasing lead or cadmium 99 SB 972 — 21 —

---
line 1 in violation of Section 108860 as authorized by Section 114393, line 2 review of HACCP plans, and alternative means of compliance line 3 shall be determined by the local governing body. Fees shall be line 4 sufficient to cover the actual expenses of administering and line 5 enforcing this part. The moneys collected as fees shall only be line 6 expended for the purpose of administering and enforcing this part. line 7 An enforcement agency may waive or reduce a fee for the permit, line 8 registration, or related services for an applicant seeking approval line 9 of a compact mobile food facility.
line 10 (e) A permit shall be posted in a conspicuous place in the food line 11 facility or in the office of a vending machine business. line 12 (f) Any A person requesting the enforcement agency to line 13 undertake activity pursuant to Sections 114149.1 and 114419.3 line 14 shall pay the enforcement agency’s costs incurred in undertaking line 15 the activity. The enforcement agency’s services shall be assessed line 16 at the current hourly cost recovery rate.
line 17 SEC. 24. Section 114395 of the Health and Safety Code is line 18 repealed.
line 19 114395. Except as otherwise provided in this part, any person line 20 who violates an y pro vision of this part or re gulation adopted line 21 pursuant to this part is guilty of a misdemeanor . Each offense shall line 22 be punished by a fine of not less than twenty-fiv e dollars ($25) or line 23 more than one thousand dollars ($1,000) or by imprisonment in line 24 the county jail for a term not e xceeding six months, or by both fine line 25 and imprisonment.
line 26 SEC. 25. Section 114395 is added to the Health and Safety line 27 Code , to read:
line 28 114395. Notwithstanding any other provision of this part, a line 29 violation of any provision of this part or regulation adopted line 30 pursuant to this part is punishable only by an administrative fine. line 31 Except as otherwise provided in this part, each offense may only line 32 be punished by a fine consistent with subdivision (a) of Section line 33 51039 of the Government Code, and those fines shall be subject line 34 to the applicable mandatory reductions based on an individual’s line 35 ability to pay as provided in paragraph (1) of subdivision (f) of line 36 Section 51039 of the Government Code. A violation of any line 37 provision of this part or regulation adopted pursuant to this part line 38 shall not be punishable as an infraction or misdemeanor, and the line 39 person alleged to have violated any of those provisions is not 99 — 22 — SB 972

line 1 subject to arrest except when independent grounds for that arrest line 2 exist under law.

O
99 SB 972 — 23 —

City Council
Agenda Report
Agenda Item 8.

DATE: March 22, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Vince DiMaggio, Assistant City Manager
SUBJECT: Draft Economic Development Strategic Plan
RECOMMENDATION:

That the City Council:

Provides feedback on the draft plan;1.

Directs staff to make any adjustments and finalize the plan; and2.

Directs staff to make the finalized plan available for public review and return the plan for adoption.

3. BACKGROUND:

At the City Council meeting on April 13, 2021, the City Council was asked to provide direction on projects and programs to be implemented with American Rescue Plan Act funds. One program was the Economic Development Incentives. The City Council directed staff to engage an economic consultant to analyze El Cajon demographics, and determine what types of large-scale businesses could successfully be attracted and what type of financial participation would be needed to attract them. Furthermore, the City Council, at subsequent meetings, reinforced the need to adopt an economic development strategy as a high priority for the City.

After soliciting seven economic development consultants for project proposals, The Natelson Dale Group (TNDG) was selected as the consulting firm to create the economic development strategy for the City.

The draft economic development strategic plan (EDSP) attached to this report contains the detailed demographic data; a Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis; market demand projections; target industry/cluster analysis; an action plan; and other information that provides the strategic framework of the draft EDSP. Please note that the agenda report is a high level summary of the draft EDSP and that the attached EDSP should be referenced for detailed information.

DISCUSSION
What is an Economic Development Strategic Plan?
An EDSP serves as a planning document, similar to a Comprehensive Plan for land use (for example, a Specific Plan or General Plan), which establishes the city’s position and helps the city compete in the highly competitive world of economic development. An EDSP provides the city direction in its economic development efforts with objectives such as: sustaining and increasing the city’s tax base; increasing private and corporate investments; increasing opportunities for public and private partnerships; job creation within appropriate business/industry sectors; and maximizing sustainable economic growth and viability.

Proposed El Cajon EDSP
City staff and TNDG, in concert with an economic development steering committee made up of El Cajon business owners, a City councilmember and business representatives, helped to shape the direction of the plan. During this process, TNDG and City staff met with committee members on three separate occasions to discuss and refine demographic data, target industries/clusters, strategize priorities, and review the draft plan. At this point in the process, the EDSP is approximately 90% complete, and now is an opportune time to engage the City Council for feedback and direction.

The development of the plan includes several analyses to provide a solid data foundation including: regional economic data; target industry/cluster analysis; a SWOT Analysis; and market demand projections. Establishing the City’s economic development position and SWOT Analysis allows for the development of recommendations going forward.

These recommendations include targeted industries, which describe specific industry sectors that fit the profile of El Cajon and represent viable economic development target opportunities.

The most important aspect of the EDSP is the nine identified strategies and the implementation of these strategies in an action plan. This can be thought of as a road map with specific actions recommended achieving the desired outcome of maximizing appropriate economic development in the City.

The EDSP Action Plan is designed to achieve the following major goals:

Expand economic opportunities for El Cajon’s resident workforce by fostering creation of a diverse range of quality jobs accessible to residents across the spectrum of education/skill levels;
Revitalize El Cajon’s commercial and industrial areas by encouraging private investment that responds to anticipated real estate market demand; and Strengthen the City’s fiscal position by attracting land uses and business types that have the potential to generate General Fund revenue.

These three goals are organized under the following sections to be implemented by individual strategies. Each strategy has a program description, action steps, an implementer, partners, tools/investments, timeline for implementation, and resource allocation. Strategies may be accomplished through existing staff time and resources while other strategies will require new resources and expenditures. It is important to note however, that approval of the EDSP does not commit or mandate any additional expenditures. Any additional expenditure will be subject to council approval through either budget amendments or allocations in future fiscal years.

Industry Targeting: Business Development/Job Creation
This section offers recommended industries as high-priority targets and includes:

Information Technology and Analytical Instruments;
Medical Devices;
Biopharmaceuticals;
Real estate, construction and development;
Aerospace vehicles and defense; and
Health services.
•
•
•
• • •
• • •
Associated implementing strategies to attract and build businesses are:

Focus City’s business retention/expansion/attraction efforts around high-priority industry clusters;

1. Collaborate with regional partners to expand availability of entrepreneurial development resources in El Cajon; and

2. Implement targeted economic development marketing program.3.

Umbrella Programs: Creating an Environment for Economic Progress Ultimately, in this section, the implementing strategies establish a business culture that is conducive and inviting to business development within the City. A large part of this will be marketing efforts that seek to capitalize on the benefits of the City and to reposition the City’s image, from a business perspective, beyond its current identity.

Leverage the City’s in-house resources for economic development through strategic partnerships, interdepartmental collaboration, and community involvement; and

1. Enhance City’s interface with education/workforce development partners.2.

Land Use/Place Making Programs: Physical Changes to Accommodate Quality Growth The following strategies focus on place making and capital investments to make new development and investment easier to implement in response to changing markets.

Furthermore, by leveraging existing downtown assets by furthering activation could make downtown El Cajon an entertainment center. The identified strategies are:

Position Downtown El Cajon as a regional arts/entertainment center;1.

Implement “reposition retail” initiative to facilitate revitalization and/or re-purposing of high-vacancy shopping centers based on potential market demand for other land uses (including “tech flex” space, office, residential and mixed-use);

2. Implement strategic initiative to attract investment in new (speculative) business park/”tech flex” buildings to accommodate targeted business growth; and

3. Implement integrated effort to expand the City’s land, zoning and infrastructure capacity to accommodate anticipated development demand

4. Next Steps
Staff and TNDG will finalize the plan based on the City Council’s feedback, and then make it available for public review and comment before returning to the City Council for approval and adoption. Once adopted by the City Council, implementation will begin through a collaborative effort of the City and other partners. Initial strategies for implementation will be identified and then broken into individual work plans for implementation, and measures will be created to chart progress. In order to fully implement the EDSP long term, staff anticipates returning to the City Council periodically with various initiatives that require City Council action in some shape or form. Given this, the City Council will be an active participant in the policy direction and implementation of the EDSP over the next several years. While this is a multi-year work plan, the strategy will need to be reviewed periodically and updated to track the ever-changing environment of economic development and ensure that the City is positioning itself in the best manner for success. Budget amendments will eventually be required for items necessitating additional funding and council action may be required on other implementation items. After the process commences, an examination of current resources being utilized may be necessary to determine if sufficient capacity currently exists to successfully implement the program or if additional resources are necessary.

Fiscal Impact
Eventual approval of the EDSP does not carry any direct costs. Several of the recommended strategies will have expenditures associated with them and would require budget amendments or funding under future year budgets. Many of the strategies, however, fall under items that are currently funded such as Zoning Code updates. As implementation will require joint ventures with partners, other organizations will also provide resources towards the goals.

Prepared By: Vince DiMaggio, Assistant City Manager and Anthony Shute, Director of Community Development
Reviewed By: Vince DiMaggio, Assistant City Manager
Approved By: Graham Mitchell, City Manager
Attachments
Draft Economic Development Strategic Plan

CITY COUNCIL REVIEW DRAFT

EL CAJON

ECONOMIC DEVELOPMENT STRATEGIC PLAN

Prepared for:

City of El Cajon, California
March 11, 2022

PREPARED BY:

THE NATELSON DALE GROUP,
INC .

YORBA LINDA, CA • www.natelsondale.com

El Cajon Economic Development Strategic Plan (EDSP)
The Natelson Dale Group, Inc.

Table of Contents

1. Introduction ...................................................................................................................................1 Overview of the Strategic Planning Process ................................................................................... 1 EDSP Committee .............................................................................................................................. 2

2. Executive Summary ........................................................................................................................3 Action Plan Goals and Scope ........................................................................................................... 3 Prioritization of City Resources ....................................................................................................... 4 EDSP Strategies ............................................................................................................................... 4 Recommended Business Retention/Expansion/Attraction Targets .............................................. 5

3. SWOT Assessment ..........................................................................................................................8

4. Highlights of Background/Technical Studies ....................................................................................9 Demographic Profile ....................................................................................................................... 9 Market Demand Projections for Commercial and Light Industrial Land Uses ............................ 12 Target Industry/Cluster Analysis .................................................................................................. 15 Existing Important Clusters in El Cajon Area .................................................................................. 16 “Candidate” Clusters for El Cajon’s Target Industry Program ....................................................... 21

5. EDSP Action Plan .......................................................................................................................... 24 Overview of Action Plan ................................................................................................................ 24 Prioritization of City Resources ..................................................................................................... 24 Recommended Business Retention/Expansion/Attraction Targets ............................................ 25 EDSP Strategies ............................................................................................................................. 27 Implementation Timeframes ........................................................................................................ 28 Appendix A: Existing Programs/Resources Relevant to the EDSP ....................................................... 39

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
1 1. Introduction

This document provides a strategic framework to guide the City of El Cajon’s economic development policies and programs over the next 5 years. The El Cajon Economic Development Strategic Plan (EDSP) is based on a comprehensive research and stakeholder input process, and reflects consensus views on the most promising opportunities and the most pressing challenges facing El Cajon’s economy. While the EDSP places primary emphasis on actions and initiatives to be pursued by the City, it recognizes that a wide array of public- and private-sector entities have roles in influencing the economic vitality of El Cajon. In this regard, some of the recommended actions will be carried out through partnerships with other entities. Even for those action items in which the City’s role is essentially coordination, this function can take many forms and is often critical to solving problems that may not otherwise have a clear constituency or single responsible entity assigned to resolving them.

Overview of the Strategic Planning Process
The recommended policies and program activities are based on an extensive planning process that included the following components:

• An analysis of El Cajon’s existing and projected demographic profile, providing an understanding of underlying trends that may affect economic growth potentials. • Direct input from a cross section of the City’s economic development stakeholders (the EDSP Committee listed below) via a series of workshop-style meetings. • A review of the various public- and private-sector entities involved in different aspects of economic development (or related activities), along with an inventory of their existing program offerings.
• An industry “cluster” analysis to identify the industry groups (clusters) that are the most important “engines” of the existing local economy, as well as the industry groups that are likely to offer the most attractive growth potentials in the future. • A real estate market analysis to identify potential future demand for commercial and light industrial
1 development in the City.

For both the industry cluster analysis and the real estate demand projections, conclusions were screened through the lens of the ongoing pandemic to identify ways in which immediate and longer- term market opportunities may be altered due to current conditions.

Where relevant, key findings of the background and technical studies are referenced in the EDSP. The full studies are provided as separate reports.

1 For purposes of the EDSP, “light industrial” is defined to include business park and “tech flex” space, representing facility types well suited for a range of technology-oriented industries.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
2 EDSP Committee

The City of El Cajon gratefully acknowledges the participation of the following individuals in the preparation of the EDSP.

City of El Cajon

Councilmember Phil Ortiz
El Cajon City Council

Vince DiMaggio
Assistant City Manager

Tony Shute
Community Development Director

Business/Community Stakeholders

Cameron Czubernat, Broker/Principal
Commercial Properties Group

Greg Kaminski, President
Gary Kaminski, President
Toyota of El Cajon and Honda of El Cajon

Cathy Zeman, CFO and Board Member
Downtown El Cajon Business Partners
(Property Business Improvement District)

Daisy Melena, General Manager
Parkway Plaza

James Sly, President and CEO
East County Economic Development Council

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
3 2. Executive Summary
Action Plan Goals and Scope
The EDSP Action Plan is designed to achieve the following major goals:

• Expand economic opportunities for El Cajon’s resident workforce • Revitalize El Cajon’s commercial and industrial areas • Strengthen the City’s fiscal position

Whereas these goals largely revolve around attracting and retaining targeted business investment, the Action Plan recognizes that the strength of the local business/development environment will ultimately depend on El Cajon’s strategic attention to a range of “foundational” conditions such as:

• Education/workforce development systems
• Entrepreneurial development resources
• The City’s reputation for business/development friendliness • Land, zoning and infrastructure capacity
• Placemaking activities that leverage El Cajon’s unique locational advantages and sense of community
• Overall image and quality of life

On a practical level, implementation of this framework will be carried out through the nine specific strategies outlined below.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
4 Prioritization of City Resources
The EDSP is intended to provide a “roadmap” to guide the City’s economic development efforts over the next five years (starting in Fiscal Year 2022-2023). The Action Plan is intended to assist the City in aligning its program priorities to match the market opportunities identified during this planning effort.

Whereas many of the proposed strategies involve activities that the City is already undertaking to some extent, the Action Plan also recommends some programs that would be new activities for the City. As such, full implementation of the Plan would likely require additional City staff dedicated to economic development (as further discussed on page 6 below). In addition, the Plan identifies opportunities for the City to leverage its in-house economic development resources through collaboration with various non-City partner organizations.

EDSP Strategies

The EDSP Action Plan is organized around nine major strategies, shown below organized under the headings of A) Industry Targeting, B) Umbrella Programs, and C) Land Use/Placemaking:

Industry Targeting: Business Development / Job Creation

1. Focus City’s business retention/expansion/attraction efforts around high-priority industry clusters

2. Collaborate with regional partners to expand availability of entrepreneurial development resources in El Cajon

3. Implement targeted economic development marketing program

Umbrella Programs: Creating an Environment for Economic Progress

4. Leverage the City’s in-house resources for economic development through strategic partnerships, interdepartmental collaboration, and community involvement.

5. Enhance City’s interface with education/workforce development partners

Land Use / Placemaking Programs: Physical Changes to Accommodate Quality Growth

6. Position Downtown El Cajon as a regional arts/entertainment center

7. Implement “reposition retail” initiative to facilitate revitalization and/or repurposing of high- vacancy shopping centers based on potential market demand for other land uses (including “tech flex” space, office, residential and mixed-use)

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
5 8. Implement strategic initiative to attract investment in new (speculative) business park / “tech flex” buildings to accommodate targeted business growth

9. Implement integrated effort to expand the City’s land, zoning and infrastructure capacity to accommodate anticipated development demand

High-Impact Action Items for Priority City Investment
Within each of the nine major strategies, the EDSP outlines a series of specific Action Steps. Some of the action items are relatively modest in scope (but still essential as parts of a comprehensive program), whereas others are high-impact action items that can be regarded as economic development “game changers” for El Cajon. These high-impact actions are highlighted on the table below (and are potentially candidate uses of available ARPA funding).

Major Strategy
High-Impact
Action Items/
Investments
Business retention/expansion/attraction • Target industry identification and outreach (locally and regionally)
Entrepreneurial development • Coordination of startup assistance programs offered by partners
• Potential facilitation of (or direct investment in)
development of business incubator
Economic development marketing program • Professionally designed, ED-specific marketing campaign
Strategic partnerships • Periodic special events to recognize and strengthen relationships with public and private partners
(including development community)
Workforce development coordination • Interface between El Cajon’s major employers and workforce development organizations
Positioning downtown as regional
arts/entertainment center
• Facilitation of public-private Downtown Working
Group (to identify specific needs and actions to
elevate downtown’s market position)
• Downtown component of overall marketing
campaign
“Reposition retail” initiative • Direct outreach to commercial/industrial property owners to identify opportunities for reinvestment in
(or repurposing of) under utilized real estate
• City-funded incentives to encourage reinvestment
Attract investment in new business park /
“tech flex” space
Expand land, zoning and infrastructure
capacity
• Implementation of “floating zone” concept to
expedite zone changes for targeted land use changes
• Expedited CEQA processes (funded by City as an
incentive for land use change)

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
6 Potential Deployment of New City Resources / Staffing The recommended Action Plan would require deployment of new City resources in order to be effectively implemented. For purposes of this draft EDSP, the consultant recommends the following resource commitments for the City’s consideration/discussion:

Major Strategy
Additional ED Staff
(FTE Allocations by
Strategy)
Other Resource
Commitments
(Amounts TBD)
Business retention/expansion/attraction 0.25
Entrepreneurial development

0.10 • Funding for contracted
incubator operator
• Funding for incubator
development and
marketing
Economic development marketing program

0.05 • Professional marketing
agency (program
design and
implementation)
Strategic partnerships 0.10
Workforce development coordination 0.05
Positioning downtown as regional
arts/entertainment center 0.10
• Special events
• Marketing
• Development
incentives
“Reposition retail” initiative

0.25 • Development
incentives
• Design prototypes and
financial analysis (part
of marketing package
to encourage
reinvestment)
Attract investment in new business park /
“tech flex” space
Expand land, zoning and infrastructure
capacity 0.10
• Profession planning
and environmental
services
Total 1.00

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
7 Recommended Business Retention/Expansion/Attraction Targets The EDSP target industry analysis identified a total of 13 industry clusters that are of potential interest to El Cajon. Among the 13 clusters, eleven are recommended as strategic targets, with six of these clusters recommended as priority targets for this Action Plan2. The priority and other clusters are organized below under the two categorical headings within which they were derived:
• Core strengths. Build on El Cajon’s existing core strengths in “traded” (dollar-importing) clusters (Local Health Services would be an example of a core strength) • Regional clusters. Tap into dominant regional industry clusters that are not currently well represented in El Cajon (e.g., Biopharmaceuticals)

Cluster
recommendations
reflecting:

Priority Industry Cluster Core
strengths
Regional
clusters

1. Information Technology and Analytical Instruments X

2. Medical Devices X

3. Biopharmaceuticals X

4. Real Estate, Construction and Development X

5. Aerospace Vehicles and Defense X

6. Health Services X

Cluster
recommendations
reflecting:

Other Strategically Significant Clusters Core
strengths
Regional
clusters

7. Business Services X

8. Communications Equipment and Services X

9. Recreational and Small Electric Goods X

10. Motor Vehicle Products and Services X

11. Environmental Services X

2 In order to efficiently concentrate available marketing resources on the most promising target industries, the EDSP will include an initial focus on the six priority clusters. The remaining five clusters would potentially be added as secondary priorities later in the implementation period (i.e., Year 3 or later).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
8 3. SWOT Assessment

The technical studies and stakeholder input provided the basis for identification of important SWOT (strength-weakness-opportunity-threat) factors affecting El Cajon’s economic development potentials.

The most significant SWOT issues are summarized below.

SWOT SUMMARY FOR

EL CAJON EDSP
Strengths Weakness

• Existing concentration of retail and
entertainment facilities attracts patronage
from regional trade area (i.e., outside city)

• Proximity to well-developed transportation
infrastructure

• Relative affordability compared to other
parts of the County

• City leadership focused on improving
economic development opportunities
through business/development friendly
policies
• Some unfavorable demographic/economic
characteristics (income levels, poverty rates,
unemployment rates, etc.) relative to region

• Limited supply of upscale amenities that
appeal to high-skilled workers: hotels,
restaurants, etc.

• Concentration of local-serving industries
relative to “export-oriented” industries,
which tend to have higher wages and more
economic spin-off opportunities
Opportunities Threats

• Additional regional arts/entertainment
options in Downtown El Cajon; Magnolia
Performing Arts Center as an anchor for
these uses

• Existing opportunities for mid-market
ownership homes ($500-$600K); limited
supply in other parts of county

• Economic development opportunities based
on location and tie-ins with existing airport

• Significant local labor force that currently
commutes out of the region: potential
opportunity for business attraction efforts
• Relatively high shares of transient and
homeless populations

• Regional government policies that do not
promote economic development priorities in
the East County region

• Lack of high-quality, modern real estate
buildings – office and business park – to
accommodate more desirable industries that
are currently relocating to other parts of the
County

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
9 4. Highlights of Background/Technical Studies

Demographic Profile

The demographic background report3 prepared for the EDSP provides socioeconomic comparisons for the following geographies: El Cajon, the East Suburban Metropolitan Statistical Area (MSA, excluding El Cajon)4, San Diego County and California. Highlights of El Cajon’s demographic profile include the following:

General Demographic Characteristics
• For the 16 years and over population, the City has a lower share of residents in the labor force, compared to San Diego County. Compared to the other benchmark regions, the City’s share was only slightly lower. The unemployment rate was significantly higher in the City compared to the benchmark geographies, including for the 25 to 64 years population (more detailed unemployment data are summarized below).
• El Cajon residents are more likely to use public transportation, compared to residents in the East Suburban MSA and the County. However, a smaller share work at home compared to the benchmark geographies. Residents across the evaluated geographies have relatively similar commute times.
• In terms of occupational employment, a smaller share of El Cajon residents is employed in Management, business, science, and arts occupations compared to the benchmark geographies.

In contrast, El Cajon residents hold a relatively higher share of jobs in Service occupations. • In terms of industry sector employment, the largest share of El Cajon residents (20.5%) is employed in the Educational services, health care and social assistance sector (similar to the benchmark geographies). Compared to the benchmark geographies, El Cajon has a relatively larger share (14.9%) of residents employed in the Arts, entertainment, & recreation, & accommodation & food services sector. In contrast, the City has a relatively smaller share (11.6%) of its residents employed in the Professional, scientific, and management, and administrative & waste management services sector.
• For the income and benefits category, the largest share of El Cajon households (17.9%) is in the $50,000 to $74,999 household income range. The City’s households are relatively underrepresented (4.5%) in the highest household income range ($200,000 or more). The City’s

3 This summary is excerpted from Analysis of Key Datasets for Economic Development Strategic Plan, The Natelson Dale Group, Inc., December 1, 2021.
4 The San Diego Association of Governments (SANDAG) divides the County into seven Major Statistical Areas (MSAs), partly for evaluating regional economic and demographic data. The East Suburban MSA is one of these seven MSAs, and it includes the City of El Cajon. The seven MSAs are aggregations of Subregional Areas (SRAs), which are aggregations of census tracts that identify large communities in the region. The East Suburban MSA includes the following SRAs: Jamul, Spring Valley, Lemon Grove, La Mesa, El Cajon, Santee, Lakeside, Harrison Crest, Alpine, and Ramona. For purposes of this analysis, data provided for the East Suburban MSA exclude the El Cajon SRA, given that the focus is to compare El Cajon to benchmark regions.

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
10 average household income level ($73,911) is relatively lower than the level in the benchmark geographies. The City’s per capita income level is about 66% to 74% of the benchmark geographies’ level.
• The City’s health insurance coverage rates are relatively similar to the benchmark geographies, save for a couple categories. However, a smaller share of El Cajon's residents (52.8%) has private health insurance compared to the benchmark geographies. They are much more likely to have public coverage (48.5%). This trend is consistent across all categories of the civilian noninstitutionalized population 19 to 64 years.
• Poverty rates – as measured by families and people whose income in the past 12 months was below the poverty level – for all categories of families are relatively higher in El Cajon compared to the County and the State.

Housing Characteristics
• The occupied housing rate (96.3%) in El Cajon is higher than in all the benchmark geographies. • About 39.1% of El Cajon housing units are 1-unit, detached structures, which is well below the shares in the benchmark regions. Compared to the benchmark geographies, El Cajon has significantly higher shares of housing units in the following unit count ranges: 10 to 19 units (14.3%) and 20 or more units (20.1%)
• Only about 6.5% of El Cajon housing units have been built since the year 2000, well below the shares in the benchmark geographies. About one-half (49.8%) of El Cajon’s housing units were built between the 20-year period from 1960 to 1979, a higher share than all the benchmark geographies.
• As significantly higher share (58.9%) of El Cajon’s housing units are renter-occupied compared to the benchmark geographies.
• Monthly housing costs – measured as percentage of household income – in El Cajon vary for ownership versus rental properties. For housing units with a mortgage, one-fourth (25.0%) of El Cajon households have monthly expenses that are 35.0% or more of household income. This share is below all the benchmark geographies. For rental dwelling units, about 51.4% of El Cajon households have gross rent costs that are 35.0% or more of household income. In contrast, this share is above the shares in the benchmark geographies.

Educational Attainment
• El Cajon underperforms in terms of educational attainment relative to the benchmark geographies. For the 18 to 24 years age category, El Cajon has the lowest share of the population (4.9%) with a Bachelor’s degree or higher. The same finding applies to the 25 years and over age category as well: just over one-fifth (20.9%) of the City is in the Bachelor’s degree or higher category, well below the shares in the benchmark geographies. • For the population 25 years or over with a Bachelor’s degree or higher, the City has the lowest share of residents – compared to the County and State – with a Science and Engineering (37.7%) a degree. The share is similar to the East Suburban MSA (37.0%).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
11 Household Composition
Average household and family sizes are slightly higher in El Cajon relative to the benchmark geographies. In addition, the data for selected age categories show that El Cajon has relatively younger population compared to the benchmark geographies. For example, about one-fourth (25.3%) of the City’s population is under 18 years, which is a higher share relative to benchmark geographies.

Resident Unemployment Rates
Figure 1, below, provides annual average unemployment rate estimates for El Cajon, East Suburban MSA (selected cities), San Diego County, and California for the 10-year period from 2011 to 2020. As shown in the figure, during the recovery from the Great Recession (between 2011 and 2015), El Cajon’s unemployment rates were the highest among all geographies. The City experienced a significant decrease in the unemployment rate from 2016 to 2019. As a consequence of the coronavirus pandemic, all evaluated geographies experienced a significant increase in unemployment rates, with El Cajon experiencing the most significant increase (8.4 percentage points between 2019 and 2020).

FIGURE 1. UNEMPLOYMENT RATE ESTIMATES: EL CAJON, EAST SUBURBAN MSA*, SAN DIEGO COUNTY, AND CA (2011-20)

Source: Bureau of Labor Statistics (BLS), Local Area Unemployment Statistics (LAUS) program; TNDG. *East Suburban MSA includes available labor force data for the cities of La Mesa, Lemon Grove, and Santee.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
El Cajon 14.7 13.1 11.3 9.3 7.5 5.2 4.4 3.7 3.7 12.1
East Suburban* 11.0 9.7 8.3 6.8 5.5 4.7 4.0 3.4 3.2 9.3 SD County 10.5 9.3 7.9 6.5 5.2 4.7 4.0 3.4 3.3 9.2
CA-statewide 11.9 10.5 9.0 7.6 6.3 5.5 4.8 4.3 4.2 10.1 El Cajon
East Suburban*
SD County
CA-statewide

0.0 2.0

4.0 6.0

8.0 10.0

12.0 14.0

16.0 %

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
12 In Figure 2, the same unemployment rate data is provided for the first five months of 2021. As the economy recovers, unemployment rates have declined for all four evaluated geographies for the first five months of 2021. However, El Cajon has experienced the slowest decline in rates, with the unemployment rate decreasing by 0.9% percentage points from January to May.

FIGURE 2. UNEMPLOYMENT RATE ESTIMATES: EL CAJON, EAST SUBURBAN MSA*, SAN DIEGO COUNTY, AND CA (JAN-MAY 2021)

Market Demand Projections for Commercial and Light Industrial Land Uses As part of the EDSP process, The Natelson Dale Group, Inc. (TNDG) completed a real estate market analysis to provide 20-year forecasts of demand for new business park (light industrial), office and retail space in El Cajon. Tables 1 and 2 on the following pages provide an abbreviated summary of the market analysis (which is more fully documented in a separate report). Given the wide range of variables that can affect development opportunities over an extended timeframe, the demand projections for each land use are presented in terms of ranges (rather and single definitive forecasts) of potential building absorption. The market projections represent unconstrained/theoretical demand based on expected regional growth. The indicated demand exceeds El Cajon’s existing land/zoning capacity. The EDSP therefore places significant emphasis on strategies to expand development capacity through redevelopment/repurposing of existing underutilized properties.

El Cajon
East Suburban*
SD County
CA-statewide

0.0 2.0

4.0 6.0

8.0 10.0

12.0 Jan-21 Feb-21 Mar-21 Apr-21 May-21
Jan-21 Feb-21 Mar-21 Apr-21 May-21
El Cajon 9.9 9.5 9.4 9.2 9.0
East Suburban* 7.9 7.0 6.7 6.9 6.5
SD County 8.0 7.2 6.8 6.7 6.3
CA-statewide 9.0 8.5 8.3 8.0 7.7
+
+
+
+

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
13 Table 1. Summary of Commercial/Light Industrial Market Analysis (20-year Demand Projections)
City of El Cajon Economic Development

Geographic Area

Light Industrial (1)

Office

Retail

El Cajon
Existing space (square feet)
Existing vacancy rate

9,746,143

2.2%

714,892

2.7%

Data not available
at city level

East County
Existing space (square feet)
Existing vacancy rate

21,524,778

1.9%

2,456,758

4.0%

19,523,057

4.2%
San Diego County total
Existing space (square feet)
Existing vacancy rate

197,695,886

3.2%

80,691,801

15.9%

135,718,717

4.9%

Projected 20-year demand for new space
(square feet) in El Cajon:
500,000 –
750,000
250,000 –
375,000
(includes medical office)
250,000 –
500,000
(includes services space in
retail centers)

(1) Light industrial includes business park and “tech flex” space suitable for technology-oriented industries.

Sources: Kidder Matthews Industrial Market Trends (4Q 2021); JLL Office Insight (Q4 2021); Voit Real Estate Services San Diego Retail report (4Q 2021); The Natelson Dale Group, Inc. (TNDG).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
14 Table 2. Key Market Strengths, Opportunities and Challenges for Commercial and Light Industrial Real Estate Development City of El Cajon EDSP

Market Factors

Light Industrial

Office

Retail

Market strengths/opportunities
for El Cajon
• Potential demand generation
from Gillespie Field airport
• Global demand surge for
industrial space due to e-
commerce growth
• Potential repatriation of out-
commuting workers could
generate demand for
R&D/tech tenants
• Potential nexus to
entrepreneurial development
initiatives
• Potential repatriation of out-
commuting workers could
create office-using
firms/tenants
• Potential to position East
County as a viable option for
tech firms currently
concentrated in North
County
• Potential to position East
County as a location for
shared office space attractive
to “hybrid” remote workers
• Potential nexus to
entrepreneurial development
initiatives
• Established/prominent retail
destination within East
County
• Population growth in East
County will drive incremental
growth in retail space
demand
• Potential to leverage
downtown as arts district
(and an attractor of regional
demand for retail/restaurant
spending)
• Potential to leverage El
Cajon’s concentration of
automobile dealerships
Market challenges for El Cajon • Lack of available/modern industrial space inhibits
business attraction
• Limited land/zoning capacity
for additional business park
development (need to focus
on redevelopment/
repurposing of existing
underutilized properties)
• El Cajon is unproven as a
Class A office market
• Remote work trend may
reduce overall demand for
new office space
• High vacancy rates regionally
may delay development
opportunities for new space
in outlying areas
• Global trends are reducing
footprint of brick-and-mortar
retail
• El Cajon’s existing image
issues (homelessness, etc.)
undermine market position
• Need to proactively plan for
reuse/repositioning of older
retail properties
Source: The Natelson Dale Group, Inc. (TNDG)

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
15 Target Industry/Cluster Analysis
This section provides a summary of the target industry/cluster analysis completed for the EDSP process.

The analysis (considers industry growth/retraction trends in the City of El Cajon, comparing the local economy’s recent and longer-term performance to regional and national benchmarks.

The study evaluates the City’s economy in terms of industry “clusters.” Clusters are groups of inter- related industry sectors whose growth potentials within a region tend to be closely aligned. The tendency of individual industries to co-locate in clusters reflects linkages through supply-chain relationships, as well as commonalities in terms of workforce requirements and infrastructure needs.

The concept of industry clusters is an effective framework for economic development programming since it reflects a holistic understanding of the regional economic conditions driving the growth or retraction of individual sectors. Nationally, the Cluster Mapping Project used in this analysis recognizes a total of 70 clusters, with 19 classified as “local” clusters and 51 classified as “traded” clusters.

Total current (2020) employment in the El Cajon area
5 is estimated at 65,159 jobs6. Of this total, 64,274
jobs are in industries that are included in either a “local” or “traded” cluster (as further defined below); the remaining 885 jobs are in miscellaneous industries not associated with specific clusters. The local clusters currently represent a total of 50,914 jobs in the El Cajon area, while the traded clusters account for 13,359 jobs.

Whereas local and traded clusters are both critically important components of a balanced economy, they have distinct roles and characteristics, and these distinctions can be helpful in terms of planning economic development programs. Some of these distinctions are summarized as follows:
• Local clusters typically form the core of a region’s economy; they primarily provide goods and services for the local (resident) population. They tend to account for the majority of jobs in a region (in the case of the El Cajon area, local clusters represent 78% of total jobs), and support a high quality of life by ensuring the availability of a diverse range of goods and services.

• Traded clusters are “export-oriented” in the sense that they include industries that are engaged in producing goods and services for end customers outside the region. Traded clusters represent close to 21% of the jobs in the El Cajon area, and are especially important from an economic development perspective given that they tend to have higher wages and higher “multiplier impacts” compared to local clusters. That is, they have a strong potential to inject new dollars into the local economy and thereby serve as “drivers” for broader economic growth.

5 Based on the data source used for this analysis, the El Cajon area is defined to include the following zip codes:
92019, 92020, and 92021. The geographic area covered by these zip codes includes some employment centers outside the City’s boundaries. Thus, total El Cajon employment indicated in this report exceeds the number of jobs located within the City limits.
6 All employment data used in this analysis are from EMSI – a private data/modeling firm nationally regarded for its ability to provide detailed (6-digit NAICS code) industry employment estimates for small areas of geography (cities and zip codes).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
16 Existing Important Clusters in El Cajon Area
Table 3 on the next page lists all traded clusters that had 50 or more jobs in the El Cajon area in 2020, and provides the following information about each listed cluster:
• Total number of jobs in the El Cajon area in 2020 (the latest full year for which data are available)
• Location quotient (compared to U.S. benchmark) in 2020. The location quotient (LQ) measures how concentrated/important an industry cluster is in a region compared to national benchmarks. An LQ value greater than 1.0 indicates that a cluster is more concentrated in the region than it is nationally. This is generally regarded as an indication that the region has a comparative advantage relative to a particular cluster, although (especially for local clusters) an LQ below 1.0 can indicate a potential growth opportunity. • Average annual wage for jobs in the El Cajon area
7 • Change in the number of jobs for the most recent 10-year period, 2010-2020 Table 4 provides the same data for local clusters that had more than 500 jobs in the El Cajon area in 2020.

Tables 5 and 6 summarize cluster job growth/retraction performance in the El Cajon area, the East County region (excluding El Cajon), and San Diego County compared to national trends. This part of the study is based on a “shift-share” analysis for each cluster that estimates an “expected” job change based on national trends. If the El Cajon area (or East County or County) has higher job growth (or experiences less severe job losses) compared to the expected change, it indicates that the local area (or East County or County) has performed better than national trends. Conversely, if El Cajon area/East County/County has less job growth (or experiences more severe job losses) compared to the expected change, it indicates that the local area/East County/County has performed worse than national trends.

7 Wage data are for jobs (not residents) based in El Cajon.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
17 TABLE 3. SUMMARY CHARACTERISTICS AND TRENDS, EL CAJON AREA LARGEST TRADED CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 50 JOBS IN 2020)

TRADED CLUSTER JOBS LQ COUNTY
LQ*
AVG
ANN
WAGE
10-YR
JOB
CHANGE

Education and Knowledge Creation 4,675 1.69 1.45 $60,187 (213) Business Services 1,518 0.37 1.10 94,658 380
Distribution and Electronic Commerce 964 0.38 0.64 99,407 (63) Aerospace Vehicles and Defense 926 3.49 2.90 115,091 (491) Recreational and Small Electric Goods 595 7.79 1.64 82,665 (22) Hospitality and Tourism 515 0.51 1.33 47,095 (288)
Furniture 361 2.34 0.40 66,327 (14)
Information Technology and Analytical Instruments 358 0.63 1.69 98,170 (105) Environmental Services 286 5.40 0.81 79,867 61
Wood Products 265 1.65 0.20 81,379 37
Plastics 256 0.97 0.42 71,341 22
Financial Services 249 0.29 0.90 136,688 (70)
Transportation and Logistics 240 0.28 0.51 65,205 20 Paper and Packaging 232 1.59 0.27 51,444 77
Metalworking Technology 232 1.26 0.56 64,124 19
Production Technology and Heavy Machinery 190 0.50 0.72 89,302 57 Downstream Metal Products 177 0.96 0.41 75,095 37
Upstream Metal Manufacturing 177 1.15 0.27 76,762 118 Performing Arts 151 0.67 1.08 41,022 (43)
Marketing, Design, and Publishing 141 0.20 0.97 77,021 5 Lighting and Electrical Equipment 116 0.92 0.61 73,394 42 Printing Services 105 0.63 0.64 65,531 (36)
Medical Devices 85 0.69 2.18 136,972 (26)
Automotive 80 0.21 0.13 72,806 (71)
Food Processing and Manufacturing 56 0.12 0.59 54,747 15 Nonmetal Mining 56 1.35 0.30 112,098 (27)
Communications Equipment and Services 54 0.44 2.74 194,312 (28) Insurance Services 52 0.08 0.68 89,718 (13)
GROUP TOTAL / AVG 13,007 0.73 1.00 $77,064 (581)
CITY TOTAL 65,159 N/A N/A $68,612 5,381

Note: LQ = Location Quotient; 10-year job change is from 2010 to 2020. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
18 TABLE 4. SUMMARY CHARACTERISTICS AND TRENDS, EL CAJON AREA LARGEST LOCAL CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 500 JOBS IN 2020)

LOCAL CLUSTER JOBS LQ COUNTY
LQ*
AVG
ANN
WAGE
10-YR
JOB
CHANGE

Local Real Estate, Construction, & Development 11,347 2.19 1.08 $74,589 2,748 Local Health Services 5,835 0.78 0.84 63,927 1,001
Local Hospitality Establishments 4,309 0.94 1.04 27,808 343 Local Federal Government 3,436 1.68 2.81 106,743 (69) Local Government 3,407 1.49 0.98 114,508 199
Local Community and Civic Organizations 3,319 1.42 1.10 29,826 1,474 Local Education and Training 3,236 0.91 0.88 83,137 (5) Local Motor Vehicle Products and Services 3,158 1.67 0.80 61,622 80 Local Retailing of Clothing and Gen. Merchandise 2,337 1.34 0.91 36,811 (470) Local Commercial Services 2,155 0.57 1.00 59,324 118 Local Personal Services (Non-Medical) 1,921 1.22 1.01 41,325 216 Local Food and Beverage Processing and Distribution 1,902 1.05 0.91 39,803 280 Local Household Goods and Services 1,116 1.18 1.09 47,609 13 Local Logistical Services 979 0.83 0.70 68,101 (73)
Local Financial Services 734 0.54 0.74 102,009 134
Local Utilities 630 1.40 0.94 179,508 52
GROUP TOTAL / AVG 49,822 1.18 1.04 $66,950 6,041
CITY TOTAL 65,159 N/A N/A $68,612 5,381

Note: LQ = Location Quotient; 10-year job change is from 2010 to 2020. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
19 TABLE 5. JOB GROWTH/RETRACTION PERFORMANCE COMPARED TO NATIONAL TRENDS FOR LARGEST TRADED

CLUSTERS, EL CAJON AREA, EAST SAN DIEGO, AND SAN DIEGO COUNTY

2010-20 GROWTH PERFORMANCE

BASED ON SHIFT SHARE ANALYSIS
TRADED CLUSTER EL CAJON E. SAN DIEGO S.D. COUNTY

Aerospace Vehicles and Defense - N/A +
Agricultural Inputs and Services + - -
Apparel + + +
Automotive - - -
Biopharmaceuticals + + +
Business Services + + +
Communications Equipment and Services - - +
Construction Products and Services - + +
Distribution and Electronic Commerce - - -
Downstream Chemical Products + + +
Downstream Metal Products + - +
Education and Knowledge Creation - - +
Environmental Services + + +
Financial Services - - -
Food Processing and Manufacturing + + +
Furniture - - -
Hospitality and Tourism - - -
Information Technology and Analytical Instruments - - - Insurance Services - - -
Lighting and Electrical Equipment + - -
Marketing, Design, and Publishing - - -
Medical Devices - + +
Metalworking Technology + - +
Nonmetal Mining - + -
Paper and Packaging + + +
Performing Arts - + -
Plastics - - -
Printing Services - - -
Production Technology and Heavy Machinery + + +
Recreational and Small Electric Goods - - -
Transportation and Logistics - - +
Upstream Metal Manufacturing + + +
Video Production and Distribution + - -
Water Transportation - + +
Wood Products + + -
Note: " + " = growth performance better than expected; " - " worse than expected.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
20 TABLE 6. JOB GROWTH/RETRACTION PERFORMANCE COMPARED TO NATIONAL TRENDS FOR LARGEST LOCAL CLUSTERS,

EL CAJON, EAST SAN DIEGO, AND SAN DIEGO COUNTY

2010-20 GROWTH PERFORMANCE

BASED ON SHIFT SHARE ANALYSIS
TRADED CLUSTER EL CAJON E. SAN DIEGO S.D. COUNTY

Local Commercial Services - - -
Local Community and Civic Organizations + + +
Local Education and Training + + +
Local Federal Government + + -
Local Financial Services + + +
Local Food and Beverage Processing and Distribution + + + Local Government + + +
Local Health Services + + +
Local Hospitality Establishments + + +
Local Household Goods and Services - - -
Local Logistical Services - + +
Local Motor Vehicle Products and Services - - -
Local Personal Services (Non-Medical) + + +
Local Real Estate, Construction, and Development + + +
Local Retailing of Clothing and General Merchandise - + - Local State Government + + +
Local Utilities + + +

Note: " + " = growth performance better than expected; " - " worse than expected.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
21 “Candidate” Clusters for El Cajon’s Target Industry Program Table 7, on the following page, provides a list of candidate clusters for the City of El Cajon’s industry targeting program (i.e., business retention, expansion and attraction). The candidate clusters are based on two strategic approaches to industry targeting:

1. Build on El Cajon’s existing core strengths. In some cases (e.g., Local Health Services), the core clusters represent strong continuing growth opportunities that could be the focus of business expansion/attraction efforts. In other cases (e.g., Recreational and Small Electric Goods), the existing core clusters are currently recognized nationally as non-growth or declining industries (in these cases, the City’s industry targeting efforts would appropriately focus on retention/repositioning).

2. Tap into dominant regional clusters that are not currently well represented in El Cajon. This strategic approach would seek to leverage El Cajon’s competitive strengths to capture increasing shares of projected County employment growth. This component of the City’s business attraction/marketing program would focus on the El Cajon’s unique “selling points” relative to the larger regional economy (including the city’s strategic location near several San Diego County area submarkets, a resident workforce that includes large numbers of commuters potentially eager to work closer to home, and the established presence of various manufacturing-related industries). In developing the preliminary list of candidates for the “tap into dominant County clusters” strategy, the consultant has focused on clusters meeting the following criteria:

a. Traded clusters (local clusters are addressed in the other strategic approach) b. Clusters with a high specialization of employment in the San Diego metropolitan area (identified as a “strong” cluster by the U.S. Cluster Mapping project) 8 c. Clusters primarily oriented towards private business investment (in contrast to clusters that are substantially composed of government/nonprofit employment – which are generally considered to have lower economic “spin-off” opportunities) Table 8 summarizes key characteristics for the candidate clusters identified in Table 7. The characteristics include annual average wages, projected 10-year job growth (for San Diego County and the State of California regions), and additional qualitative criteria.

8 The U.S. Cluster Mapping project defines a metro area’s “strong” clusters as those with a high specializatio n in the region (metropolitan statistical area [MSA]). High Specialization indicates the LQ of Cluster Employment is greater than the 75th percentile when measured across all MSAs. There are 917 total MSAs in the U.S. Thus, for a cluster to be classified as “strong” in the San Diego MSA, its LQ must be greater than the LQ of that specific cluster in at least 687 of the MSAs in the U.S.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
22 TABLE 7. PRELIMINARY LIST OF CANDIDATE CLUSTERS FOR EL CAJON’S INDUSTRY PROGRAM

STRATEGIC APPROACH LOCAL-SERVING
CLUSTERS "TRADED" CLUSTERS

Build on El Cajon existing
core strengths
• Local Real Estate, Construction,
and Development
• Local Motor Vehicle Products
and Services
• Local Education and Training
• Local Health Services
• Education and Knowledge
Creation
• Aerospace Vehicles and
Defense
• Recreational and Small
Electric Goods
• Environmental Services

Tap into dominant County
industry clusters that are not
currently well represented in
the local El Cajon area

• Communications Equipment
and Services
• Business Services
• Biopharmaceuticals
• Medical Devices
• IT and Analytical Instruments

Source: The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
23 TABLE 8. CHARACTERISTICS OF CANDIDATE CLUSTERS

PROJECTED 10-YR
JOB GROWTH2

DOES THE CLUSTER LEVERAGE

POTENTIAL STRATEGIC ADVANTAGES
AND PRIORITIES?

CANDIDATE CLUSTER
AVG
ANN
WAGE1

SAN DIEGO

COUNTY CA

MFG./R&D
FOCUS

SUPPORTED
BY

REGIONAL

INITIATIVES
"STRONG"

REGIONAL

CLUSTER

El Cajon Existing Clusters
Education and
Knowledge Creation $139,123 5,025 71,238

✔
Aerospace Vehicles and
Defense 129,218 3,070 Job Losses

✔ ✔ ✔
Recreational and Small
Electric Goods 93,411 Job Losses Job Losses

✔ ✔
Environmental Services 72,307 90 576

✔ ✔
Local Real Estate,
Construction, and
Development
76,226 5,165 95,702

Local Motor Vehicle
Products and Services 58,364 Job Losses Job Losses

Local Education and
Training 80,747 2,544 31,162

Local Health Services 87,255 32,293 336,391

Regional Clusters
Communications
Equipment and Services $153,124 Job Losses Job Losses

✔ ✔ ✔
Business Services 116,927 21,484 216,576

✔
Biopharmaceuticals 164,720 841 1,179

✔ ✔ ✔
Medical Devices 133,868 91 2,475

✔ ✔ ✔
IT and Analytical
Instruments 170,297 3,617 51,371

✔ ✔ ✔

Note: 1. Average compensation based on averages for San Diego County. 2. Net number of new jobs.

Source: The Natelson Dale Group, Inc. (TNDG); Employment Clusters Analysis, SANDAG.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
24 5. EDSP Action Plan
Overview of Action Plan
The EDSP Action Plan is designed to achieve the following major goals:

● Expand economic opportunities for El Cajon’s resident workforce by fostering creation of a diverse range of quality jobs accessible to residents across the spectrum of education/skill levels ● Revitalize El Cajon’s commercial and industrial areas by encouraging private investment that responds to anticipated real estate market demand
● Strengthen the City’s fiscal position by attracting land uses and business types that have the potential to generate General Fund revenue

● Education/workforce development systems
● Entrepreneurial development resources
● The City’s reputation for business/development friendliness ● Land, zoning and infrastructure capacity
● Placemaking activities that leverage El Cajon’s unique locational advantages and sense of community
● Overall image and quality of life
Prioritization of City Resources
The EDSP is intended to provide a “roadmap” to guide the City’s economic development efforts over the next five years (FY 2022-2023 through FY 2026-2027). The Action Plan is intended to assist the City in aligning its program priorities to match the market opportunities identified during this planning effort.

Whereas many of the proposed strategies involve activities that the City is already undertaking to some extent, the Action Plan also recommends some programs that would be new activities for the City. As such, full implementation of the Plan would likely require additional City staff dedicated to economic development. In addition, the Plan identifies opportunities for the City to leverage its in-house economic development resources through collaboration with various non-City partner organizations.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
25 Recommended Business Retention/Expansion/Attraction Targets Implementation of the EDSP Action Plan will position the City to be competitive for a targeted business development program including the following elements:
● Retention of existing firms/industries that are in a “repositioning”9 mode due to national/ statewide market and regulatory conditions;
● Expansion of existing firms in strong growth sectors; ● Attraction of new firms based on El Cajon’s competitive advantages within the San Diego/southern California regions; and
● Entrepreneurial development, with a focus on technology-oriented firms aligned with the region’s core industries.

As described in Chapter 4, the EDSP target industry analysis identified a total of eleven industry clusters10 that are of potential strategic targets for El Cajon. Among the eleven clusters, six are recommended as priority targets for this Action Plan:

1. Information technology and analytical instruments

2. Medical devices

3. Biopharmaceuticals

4. Real estate, construction and development

5. Aerospace vehicles and defense

6. Health services

In order to efficiently concentrate available marketing resources on the most promising target industries, the EDSP will include an initial focus on the six priority clusters. The remaining seven clusters would potentially be added as secondary priorities later in the implementation period (i.e., Year 3 or later).

The table on the following page lists El Cajon’s potential target industries (with high-priority targets highlighted in yellow). The table also identifies the likely areas of programmatic focus (i.e., retention, expansion, attraction, and/or entrepreneurial development) most relevant to each industry cluster.

9 In addition to business retention, “repositioning” could also potentially be relevant to a focus on reshoring U.S. manufacturing – a strategy that is currently receiving significant discussion in the economic development profession in light of the pandemic.
10 Industry “clusters” are closely aligned groups of industry sectors representing supply- chain relationships. The “Medical Devices” cluster, for example, includes not only the actual manufacturing of medical devices but also related industries that provide inputs to the manufacturing process and support the sales and distribution of finished products.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
26 RECOMMENDED TARGET INDUSTRIES
(INITIAL PRIORITIES INDICATED IN YELLOW)
Focus of economic development activity
Potential Industry/Cluster Targets Retention/
Repositioning Expansion Attraction Entrepreneurial
development
Community
Amenity

Core strengths. Build on El Cajon’s existing core strengths:
● Real estate, Construction and Development
● Aerospace Vehicles and Defense
● Health Services
● Recreational and Small Electric Goods
● Motor Vehicle Products and Services
● Environmental Services

Regional clusters. Tap into dominant regional industry clusters that are not currently well represented in El Cajon, such as:
● Information Technology and Analytical Instruments
● Medical Devices
● Biopharmaceuticals
● Business Services
● Communications Equipment and Services
El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
27 EDSP Strategies

The EDSP Action Plan is organized around nine major strategies which are outlined below and detailed on the following pages.