GALT, CA (MPG) - The City Council unanimously approved sending opposition letters on a pair of bills making their way through the California Assembly that would make it easier to set up commercial restaurants in residential neighborhoods and temporary businesses in the city.

The letters address Assembly Bill 2315 and Assembly Bill 1679 introduced earlier in this session. The letters were one of three items council members asked to address separately instead of as part of the May 5 meeting Consent Calendar, an agenda item typically consisting of city business items council adopts as a batch.

AB2315 proposes changes to the regulation of Microenterprise Home Kitchen Operations (MEHKOs), a new category authorized under the California Retail Food Code allowing small-scale, home-based food businesses operated out of a private residence that sell directly to consumers, often through take-out or delivery. Current law allows jurisdictions to decide whether or not to allow MEHKOs and, if allowed, control how they operate.

AB2315 would eliminate this by mandating jurisdictions allow MEHKOs as a permitted residential use, prohibit local limits on locations and remove zoning review authority. Oversight of MEHKOs would shift to local health departments.

AB1679 would require jurisdictions to allow what are referred to as “pop-up businesses” by mandating the establishment and administration of a new temporary commercial use program. The program would allow temporary businesses to operate in existing commercial spaces for a limited time.

City staff asked council to issue letters in opposition to both bills due to concerns about loss of local control, additional regulations requiring increased staff workload, economic impacts on existing commercial businesses, negative impacts on neighborhoods quality of life and potential public safety issues.

“In short, both bills are intended to support small business, but they significantly reduce local control and create new requirements for cities,” Assistant City Manager Aime Mendes said.

Councilmember Shawn Farmer, who requested the Consent Calendar item be addressed separately, spoke forcefully against both measures, stating he supports small businesses and entrepreneurship but added allowing it to occur in homes “is not a good idea.”

Farmer acknowledged people do operate businesses out of their homes.

“This is a completely different animal,” Farmer said of the bills.

Galt Chamber of Commerce Community Relations Director Kat Seabolt also spoke in support of small businesses during public comment on the letters. She added that the proposed bills created an “uneven playing field” between existing commercial businesses operating under city regulations and proposed MEHKOs and pop-up vendors.

Councilman Tim Reed echoed these comments, noting the city already has issues with pop-up food vendors. He also said his research indicates over 50% of home fires start in the kitchen area.

The council approved sending both Assembly bill opposition letters 5-0.

The other two items requested to be addressed separately from the Consent Calendar dealt with two project awards.

Reed asked that a construction award for the Walker Community Park Phase 2A and for the Gun Range Expansion and East Gun Range Improvement project be voted on separately, mainly over concerns about timelines for completion.

Staff recommended awarding the Walker Community Park project to Imagecon, Inc., which was the lowest of seven bidders on the project at just over $6.42 million. The recommendation was also made to accept bid Alternatives 1 and 3 totaling $175,708, which when added with the base bid and contingencies brought the total cost to just over $7.06 million.

Phase 2A includes completion of three baseball fields along with upgrades to irrigation, landscaping, site utilities and parking to make the park a fully functional sports facility.

Staff also recommended awarding the Gun Range project to Westcon Construction Corporation, the lowest of 11 bidders at almost $1,128,749.60, with a 10% contingency clause. The project addresses needs at both city-owned gun ranges located at the Galt Wastewater Treatment Plant including block wall stabilization, building up the side berms, installing concrete paths and pads, drainage improvements and other work.

Reed said his concern was inserting language in public staff reports that specified project timelines and what contractors could be assessed in fines should they fail to meet these requirements. Reed read an email from Interim Public Works Director Fritz Buchman stating contractors could face fines, or liquidated damages, of $7,200 per day in the Walker Park project and $1,500 per day in the gun range project should they fail to meet completion deadlines.

In public comment Buchman confirmed these assessments.

“We’ve had problems in the past with contractors going past their estimated dates, and what I’m asking for is talking about putting something in that says if you’re this many days late you pay a fine,” Reed said. “I wanted to make sure the contractors had some vested interest in getting this done and getting it done on time.”

City Attorney Frank Splendorio told council he and Reed had discussed the issue and believed it was a “reasonable approach” to add this language to public reports made to council on the project since it already existed in the contracts. He also noted liquidated damages must be determined by actual costs and not arbitrarily, hence the differences in the two contract amounts.

“They have to be tethered to real-world costs,” Splendorio added. “If not, it’s going to be looked at as a punishment and courts won’t enforce that.”

Council unanimously approved the added language, with Reed saying he was satisfied the public would understand that council was “holding their (contractors) feet to the fire” to get the work completed properly.