7.N Farmers’ Market to Peter Cipponeri Farms 8-04-15

8/20/2019 7.N Farmers’ Market to Peter Cipponeri Farms 8-04-15

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CITY OF CARMEL-BY-THE-SEA

Council Report

August 4, 2015

To: Honorable Mayor, Members of the City Council,Douglas J. Schmitz, City Administrator

From: Janet Bombard, Library and Community Activities Director

Subject: Consideration of a resolution awarding a contract to operate the Carmel-by-the-Sea Farmers’ Market to Peter Cipponeri Farms, LLC andauthorize staff to work with Cipponeri Farms on the operationalguidelines for the market

____________________________________________________________________________________________________________________________________________________

RECOMMENDATION(S):

Award a contract to operate the Carmel-by-the-Sea Farmers’ Market to Peter CipponeriFarms, LLC and authorize staff to work with Cipponeri Farms on the operational guidelinesfor the market

EXECUTIVE SUMMARY: Staff and the Farmers’ Market Ad Hoc Committee, based on direction provided by the CityCouncil at its November 3, 2014 meeting, are recommending that the City enter into acontract with Peter Cipponeri Farms, LLC to operate the City’s Farmers’ Market.

Staff and the Ad Hoc Committee are also recommending that staff be given the authorizationto work with Cipponeri Farms on the market’s operational guidelines

__________________________________________________________________________

ANALYSIS/DISCUSSION:

At the November 3, 2014 meeting, the City Council considered Farmers’ Market Ad Hoc

Committee, Community Activities and Cultural Commission, and staff recommendations

regarding the future direction of the Farmers’ Market.

Council provided staff with a list of directives regarding the market, one of which was to issue

a Request for Proposal (RFP) for the management and operation of the City’s Artisan Food

Experience Farmers’ Market. The City received two proposals in response to the RFP.

Based on the fact that at least three written proposals were not received, as per the City’s

purchasing ordinance, and in response to feedback received from Farmers’ Market vendors

who chose not to submit a proposal, the City Council rejected the bids and authorized the

Farmers’ Market Ad Hoc Committee (Councilmembers Dallas and Theis) to revise the

guidelines for the operation of the market and issue a new RFP.

The Ad Hoc Committee, Community Activities and Cultural Commission Chair Donna Jett,

and City staff met with the executive director of several local certified farmers’ markets to

Council Meeting Date: 08/04/2015 Agenda Item: 7.N

Page 1


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discuss recommended guideline revisions. During this process, a third vendor indicated

interest

in

submitting a proposal to run the City s Farmers Market.

After re-reviewing all three proposals, the Ad Hoc Committee indicated its satisfaction with

the proposal from Peter Cipponeri Farms, LLC, an experienced Farmers Market vendor.

Due to the difficulties encountered with the lack of responses to the RFP issued in January

2015, t is staff and the Ad Hoc Committee s opinion that the issuance

of

a new RFP would

very likely end in the same result s before. Staff and the Ad Hoc Committee, therefore, are

recommending that the City enters into an agreement with Peter Cipponeri Farms, LLC to

operate the City s Farmers Market and and authorizes staff to work with Cipponeri Farms on

the operational guidelines for the market.

The current market vendor, West Coast Farmers Market Association, is on a month-to-month

contract with the City. Should Council award the contract to Peter Cipponeri Farms, LLC,

the West Coast Farmers Market Association will be given 30 (thirty) days notice in

accordance with the current contract between the City and West Coast Farmers Market

Association.

FISCAL IMPACT: None. Peter Cipponeri Farms, LLC will underwrite all market costs.

PREVIOUS COUNCIL ACTION DECISION HISTORY:

At the November 3, 2014 meeting, the City Council rejected the two responses to the

Farmers Market RFP and authorized the Farmers Market Ad Hoc Committee

to

revise the

guidelines for the operation of the market and issue a new RFP.

ATTACHMENTS:

Attachment A: Response to Request for Proposal for the Carmel-by-the-Sea Farmers

Market, submitted by Peter Cipponeri Farms, LLC

Attachment B Draft License Agreement between the City of Carmel-by-the-Sea and Peter

Cipponeri Farms, LLC

Attachment C: Draft Resolution authorizing contract with Cipponeri Farms, LLC

I

Budgeted : N/A

APPROVED:

· istrator

IFunding Source: N/A

Date:

V 7

s

Council Meeting Date: 08/04/2015

Agenda Item: 7 N

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Agenda Item: 7.NPage 3

FAR lv f.ER S

l v f A B E . E T


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July 29, 2015

Ms Janet Bombard

City o Carmel-By-The-Sea

P.O. Box CC

Carmel-By-The-Sea , CA 93921

Re : Carmel-By-The-Sea Certified Farmers Market

Response To Request For Proposal

Dear Ms. Bombard:

Peter ipponeri

Director o Operations

Peter Cipponeri Farms, LLC

3231

E

Hawkeye Ave

Turlock, CA 95380

(209) 678-4262

pcipponeri92@gmail .com

We appreciate the opportunity to submit our proposal

to

operate the Carmel-By-The

Sea Certified Farmers Market. We understand the City s goal o providing a community

oriented market that offers the freshest and highest quality produce available . We are

committed

to achieving this goal and ensuring that your Market

is

a source o pride for

the City and its residents.

The enclosed materials provide details about our qualifications and proposed approach

to

operating the Carmel market. We hope

to

build a strong working relationship with the

City and,

to

that end , encourage you to share your ideas, experiences and suggestions.

We are excited about the prospect

o

operating

th

is Market and look forward

to

introducing you to our entire team. If you have any questions, please contact me

directly at (209) 678-4262.

Sincerely,

Peter Cipponeri

Director

o

Operations


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T T C ~ M E t JT A

T BLE OF CONTENTS

PAGE

OUR BACKGROUND 1

MARKET OPERATIONS 2

MARKETING STRATEGY 3

MARKET VENDORS 4

OPERATING BUDGET 5

RULES AND REGULATIONS 6

INSURANCE 7


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tT CHMEtJT

A

OUR BACKGROUND

HISTORY

The Cipponeri family has deep roots in California's agricultural industry. For four generations,

we have owned and operated

an

approximately 800 acre farm

in

Turlock, California known

as

Cipponeri Family Farms.

n addition to growing produce for large

customers such as Dole and Seneca

Foods, our farm has sold fresh produce

directly to consumers at farmers'

markets for more than 60 years . We

are an active member

o

9 California

farmers' market associations.

We formed Peter Cipponeri Farms ,

LLC (PCF)

in

order to expand our

farming business to include operating

farmers' markets

in

California . Unlike

many markets that are

run

by

entrepreneurs, PCF's markets will be

operated by seasoned farmers that can

draw upon their expertise

in

the

agricultural industry to enhance the

farm-to-table experience for the market

consumers.

Our family's philosophy has always

been to satisfy each valued customer

with the best quality produce and

establ i

sh

long-term, meaningful

relationships with our customers. PCF

will continue to apply this philosophy to

its market operations .

CORE VALUES

Photo

o

Peter Cipponeri's great grandmother being

recognized for Cipponeri Family Farms' contributions

to San Francisco's farmers' market by former Mayor

Diane Feinstein.

Treat our farmers, employees and customers with dignity and respect; Conduct our business

with honesty, integrity and fairness; Create relationships that benefit every stakeholder (the City,

farmers, customers and local businesses) ; Continuously raise the benchmark o quality in the

industry.

MISSION

Support local agriculture and healthy communities

by

strengthening and promoting California's

farmers' markets.

CERTIFICATION

Peter Cipponeri Farms, LLC is a certified producer that is qualified to operate farmers' markets

in California pursuant to California's Code

o

Regulations §1392.2.


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TT CHMCtJT A

MARKET OPERATIONS

OUR TEAM:

The success of any farmers market starts with a good management team, which we believe

should have strong organizational and communication skills. creativity and industry experience.

With these traits

in

mind, we ve assembled the following team for your market:

Director of Operations: Peter Cipponeri

Peter is a fifth generation farmer

on

his mother s side and fourth generation farmer

on

his

father s side. Peter has been farming since he was 6 years old and has worked at farmers

markets for 17 years. During the past 7 years , Peter has managed Cipponeri Family Farms

farmers market operations, which entails overseeing 40 weekly markets and the sale of

more than 40 thousand pounds of produce per week.

Peter will oversee all market operations, which will include taking the lead role in planning

the market layout, recruiting and selecting market vendors , creating and implementing a

marketing strategy, and strong community contacts .

Market Manager: Mason Ankeney

Mason has more than five years of experience working at certified farmers markets . During

that time, he has sold a wide variety of seasonal fresh fruits and vegetables as well as pre

packaged and processed products , such as dried fruits , hummus, meats and flavored nuts.

Growing up in the Central Valley, Mason has a keen understanding of the industry, a vast

array of connections with vendors and understands the quality products that we expect to be

brought to and sold at this market.

Mason will manage the day-to-day operations of the market, including communicating with

farmers and customers , inspecting vendor products and set-up , collecting stall fees, space

allocation, handling complaints and disputes, and enforcing market bylaws.

Accounting Officer Manager: Maia Cipponeri

For the past three years , Maia has provided accounting services for Vierra Dairy

Farm

the

largest permitted Holstein dairy in Hilmar, California. Maia is experienced in handling payroll ,

accounts payable, accounts receivable , loan management, and cash-flow management.

Maia will perform these functions for PCF along with other managerial responsibilities such

as record keeping and human resources.

Legal: John Klotsche

John

is

a Senior Counsel at the law firm of Hanson Bridgett LLP. He has represented our

family for multiple years and is well-versed in the laws and regulations that govern farmers

markets. We have retained John

to

, among other things, help ensure that the market

is

legally compliant.

VOLUNTEERS:

We understand that local volunteers have historically played

n

important role at Carmel s

market. We will continue that tradition by recruiting local residents

to

assist our team with

operating the market.

LOCATION HOURS:

We will continue to operate the market year-round every Thursday from 10:00 a.m.

2:00p

.m.

at 8th and Mission Street in Carmel-By-The-Sea .


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MARKETING STRATEGY

n

order to raise awareness of the market and attract new customers , we will promote the

Market using various marketing techniques, including those set forth below.

Branding

Branding a market with a

un

ique logo improves customer recognition and loyalty. Accordingly,

we hired a professional marketing firm to generate the following logo for the Carmel market:

Website

F A R M E R S

M RKET

We have hired a professional web designer to create a website for this market. The website will

provide important information about the market, including the location and hours, the Market

Manager s contact information , vendor applications, the market rules and regulations , calendar

of events, special announcements, and a vendor list.

Signage

Prior to each market day, we will set-up sandwich board signs that announce the opening of the

market and provide the location of the market. We will work with the City to identify the best

place for to display these signs in order to maximize their effectiveness.

Local Collaboration

Market awareness can

be

increased by effective collaboration with other businesses . We will try

and identify any restaurants that use produce from the market and encourage those restaurants

to display the markets logo

on

their menus and websites .

Advertising

We will advertise the market

in

the City s local newspaper, The Carmel Pine Cone, and post

flyers on bulletin boards at local venues such as grocery stores, the post office, parks, etc.

Moreover, we hope the City and County websites will provide information about the market and

a link to the market s website.

Market Bucks

We will generate Market Bucks, which are paper vouchers worth a specified dollar amount to be

used to purchase fresh fruits and vegetables at the Market. Market Bucks will be distributed

promotionally as flyers . Moreover, Market bucks can also be purchased with crediUdebit cards

by consumers that either forgot to bring cash to the market or want give Market Bucks as a gift

to someone else.


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T A C ~ M ~ f J T

_

MARKET VENDORS

VENDORS

We expect to offer the freshest and highest quality produce available . We will vet each vendor

that is admitted into this market in order to ensure their product meets this standard . Moreover

in order to encourage the best growers to participate at this market we will offer free stall space

to all new vendors for their first 6 months of participation at the Market.

PRODUCTS

When deciding which vendors to admit into the market our goal

is

to ensure a diverse mix of

high-quality agricultural products produced y California farmers and local businesses such as:

•

Fruits

Vegetables

•

Nuts

•

Breads

Meats

•

Eggs

Cheese

•

Flowers

Locally prepared hot foods

We will not accept the following products into the Market:

•

•

Crafts

Cottage foods

Overly processed and/or fried foods

Nationally distributed packaged foods

Meat and dairy products treated with growth hormones

Items not grown and/or processed by the vendor

LOCAL BUSINESSES

The participation

o

local business is vital to a successful market. We will take the following

steps in order to encourage local businesses

to

participate in the Carmel market:

•

Reserve one free stall each week for local non-profit business .

Reserve one free stall each week for local merchants.

Reach out to local restaurants and wine/beer merchants and encourage them to become

vendors. If the response

is

positive we may create a Featured Restaurant Program that

showcases one food establishment per week from the local business district.


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A

7TAC \M E_ lT ' A

OPERATING BUDGET

At your request , we have estimated our budget for operating this market for the first year , which

is

set forth below. Please note that this budget

is

only a rough approximation due to variables

that are not currently known (e.g

.,

total number of vendors may fluctuate , the number of new

vendors that will have their stall fees waived for the first six months

is

unknown, etc.

).

As you will see, this budget shows a loss for the first year . This

is

not unexpected due to the

various one-time start-up costs (e.g., logo, website, legal) . Our expectation

is

that this market

will grow and become profitable after the first year

o

operations.

Estimated expenses:

•

•

•

•

Marketing (e.g

.,

logo, website , advertising, free Market Bucks)

Salaries

Overhead (fuel, office expenses)

Legal

Insurance

State fees required under Food & Agr. Code §47021 (a))

Total Expenses

Estimated Income:

• Stall fees

Total Income

Net Profit for the First Year of Operations

25,250.00

17,640.00

3,400.00

2

,500.00

8

,450.00

80.00

57,320.00

31,200.00

31,200.00

( 26, 120.00)


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RULES ND REGUL TIONS

n accordance with California's Food Agricultural Code §47004 , we have adopted a set

of

written Rules and Regulations that will govern our operation

of

the market. A copy

of

the Rules

is enclosed with this Proposal.

e

encourage you to review the Rules and provide any

feedback or suggested changes .


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T A . C tU t:. -JT

INSUR NCE

Farmers' markets present an array of potential hazards because they involve food being served

to the public, crowds, bulky equipment for displaying products, etc. Thus , even a well-run

market where the manager and vendors are all committed to safety can have accidents.

To help mitigate the risk of liability, prior to operating the Market, we will obtain the following

types and amounts

o

insurance:

• Commercial general liability with a minimum 1 ,000,000 limit per occurrence/ 2,000,000

aggregate.

• Automobile liability insurance with a minimum

1

,000,000 limit per accident.

• Workers compensation as required by the State of California and employer's liability

insurance with a minimum

1

,000,000 limit per accident.

The insurance po

li

cies will be in full force during the life of the license agreement and the City

will be named as an additional insured. Certificates

o

insurance will be provided to the City

upon request.


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T T C H M E ~

ules egulations

Adopted 2015)


3231 E Hawkeye Ave

Turlock, CA 95380

209) 678-4262


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ATTACI-\ME-NT

TABLE OF CONTENTS

PAGE

I. Authority to Operate ... .... .. .......

...............

. .

.......

. ...... ........ . .. ...........

.. .

.... .

.....

. .. .... .... . ..

II

.

Purpose

and

Implementation

of

the

Rules

............................................... ....... ......... · · 1

III. Admission

......

... ......................... .... ......

...........................

.

................................

1 2

IV.

Market Operating

Season Days and Hours ................................................................ 3

V. Cancellations .......................................................................

.. . . . . . . . .

.. ...... .

· · · · ·· ·

.3

VI.

Setup Safety

and

Sanitation

... ...

.....................

... . ..................... ............ . ........... .

..

.3-4

Vll

S 1

. 4

. amp 1ng

.....................

.

....

. ......... ... .. ...

...............

.. . .. ... .

.. .

... ...................

.. .

....... .. .

VIII. Noise

.........

.........................

................

........ .... .. . ........ .. ..... . ..................

....

...... 4

IX.

S

gnage

................. . ...............

... .................................... .

.....

. ............... ............ 4-5

X. Conduct

....

. .. ........ .......... .. ...................

.... ..............

.

..... ...........................

..... .. ..

..

.5

XI. Record Audits

..............................................................................

..

................ ..

.. . .

5

XII. Insurance and Indemnity .................................... _ ...... .. . ..................... ............ .. .... 5-6

XIII. Inspections

..............................

.............................. .

............................. ....... ..... 6

XIV. Organic Products

......

................

.. . ........ ...............

. . . . . . . . . . . . . . . . . . .

................ .. . ....... 6-7

XV. Forms of Payment

................

..

.....

. ................ _ ... ... ...... .. . . . . . . . . . . . . . . . . . . . . . . . . . ... .... . ... ... 7

XVI. Prices . . . . . . . . . . .

....

................. . ........ .

.....................

... ..... .

............................... ...... 7

XVII. Scales ............. .... ......

...........

.. .... . .. .. _

....

_

.............

.........................

....

. .

.......

. ...

7

XVIII. Parking ............................................................ ;........ _ ..... . ................ ...... ... ... 7

XIX. Load Sheets .......................................................... .. ..... ........... ... ... ................ . ... 7

XX. Violations ... ........... ...... ....... ...

........

.....

.. .

........ . .......... .. .. ........ .. . . ..... . .. . .. . ... ... ... 7-8

XXI. Dispute Resolution

....

..

.........................................................

... ........................... 8


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ATIACHM.t=t-..lT

Peter Cipponeri Farms LL

RULES

REGULATIONS

I AUTHORITY TO OPERATE

Peter Cipponeri Farms, LLC ( PCF ) is a certified producer that is authorized to operate the

certified farmers' markets by the State

of

California. Each market operated by PCF (the Markets )

is certified by the County Agricultural Commissioner as a direct marketing outlet for producers to

sell their products directly to consumers.

The

Markets are operated

in

accordance with the

laws

and regulations pertaining to direct

marketing in California, including the California Food and Agricultural Code (e.g., Div. 17, Ch.

10.5,

§§47000, t seq. and the California Code of Regulations e .g., 3

C.C.R.

§§1392, et seq. .

II PURPOSE AND IMPLEMENTATION OF THE RULES

Pursuant to California Food and Agricultural Code §47004 and California Code ofRegulations

§ 1392.6, PCF adopts these Rules and Regulations (the Rules ) as

of

June 18, 2015 . The purpose

ofthese

Rules is to govern the operation, administration and management

of

the Markets. All

participating vendors (i.e., individuals/entities that PCF authorizes to sell products at a Cipponeri

Market) must be familiar with and abide by the Rules, as well as all local, state and federal laws

and regulations pertaining to direct marketing in California.

PCF's governing body and its designated agents have the final authority in interpreting and

enforcing these Rules. PCF's governing body and its designated agents shall implement and

enforce all rules and regulations pertaining to the operation

of

the Markets in a fair and equitable

manner. PCF reserves the right to make additions or deletions to these Rules when deemed

necessary . Reasonable notice

ofthese

changes will be provided to the vendors.

II

ADMISSION

A. dmission of Vendors into the

Market

In order to be considered for admission to sell products at a Market, a prospective vendor

must submit to PCF a complete PCF's Application to Sell.

PCF has complete discretion to determine whether to admit an applicant into any

of

the

Markets. In deciding whether to admit an applicant, PCF will consider various factors,

including, without limitation:

1. History of compliance with the Rules and local, state, and federal laws and

regulations .

2. History of participation at the market.

3. The quality

of

the product to

be

offered for sale.

4. The number of other vendors selling the applicant's product.

5. Space availability.

6. The best interests ofthe market.

-

1


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RULES &

REGULATIONS

Applicants that are selected by PCF to be a vendor at a Market must sign PCF s Vendor

Agreement before being allowed to sell products at a Market.

Vendors are not permitted to assign selling space in a Market.

Any

change in a vendor s

business ownership requires submission

of

a new Application to Sell and,

if

selected to

participate, execution of a new Vendor Agreement.

B.

Admission

o

Products into the Market

A vendor may only sell certified

and

non-certifiable agricultural products that he/she/it has

produced by the practice of agricultural arts upon the land that the vendor farms and owns,

rents, leases, or sharecrops. All products must comply with all laws and regulations pertaining

to maturity, quality and labeling.

Vendors selling certified agricultural products may only sell products listed on his/her/its

current and valid certified producers certificate.

PCF has complete discretion to determine whether to admit any certifiable agricultural or

non-certifiable agricultural product to a Market or nonagricultural product (with PCF

approval) to an area adjacent to a Market. In exercising this discretion, PCF shall consider,

among other things, the six criteria discussed in section Il.A, above.

C. Vendor Fees

Unless otherwise agreed by PCF, each vendor will be charged a stall fee in the amount set

forth in its Vendor Agreement for each

10

foot by

10

foot space occupied by the vendor.

Stall fees shall be paid each market day before the close

of

the market. Late payments

shall bear interest at a rate

of

eighteen ( 18) percent per year.

D. Space Allocation

PCF has complete discretion to determine a vendor s location, space size and other factors

of

assignment

of

selling space in a Market. In making this determination, PCF will

consider various factors, including, without limitation:

1. Maintenance of consumer-producer relationships.

2. Concerns about unsafe or unsanitary conditions.

3. Need to alleviate chronic overcrowding.

4 Empty spaces which need to be filled .

5. Increase foot traffic.

6. The Vendor has engaged in conduct considered detrimental to the market.

7 Failure to attend a previously reserved market space without adequate prior notice.

8. Failure to adhere to market arrival and departure times .

- 2


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RULES REGULATIONS

IV. MARKET OPERATING SEASON, DAYS AND HOURS

The days and hours for any market shall be set by PCF. Sellers must arrive no earlier than 2 hours

prior to and no later than 30 minutes prior to the published opening time of a Market and leave

within one hour

after the published closing time

of

a Market.

Sales prior to the posted opening hours

of

a Market or after the posted closing hours

of

a Market

are prohibited. Vendors may leave a Market site prior to the published closing time only upon the

approval of the Market Manager who will assess public safety and welfare.

V

CANCELLATIONS

PCF endeavors to keep each stall at the Markets occupied each week. Vendors who will not attend a

Market must notify the Market Manager at least forty-eight ( 48) hours prior to

th

market day to

avoid stall fee charges. Vendors who cancel less than two (2) days before a Market day, regardless

of

the reason, are responsible for the stall fee unless PCF can fill the stall.

Repeated absences, regardless

of

their cause or whether notification was provided, may result

in

suspension or removal from a Market.

VI. SETUP, SANITATION AND SIGNAGE

A. Setup

Display table frontage must be behind the setup line designated

by

the Market Manager.

o

displays, shade overhangs, signs, or boxes may extend into the common customer traffic

aisle way.

Vendors that display products on a side table must allow at least 24 inches

of

unobstructed side

aisle. Tables and other display fixtures must be sturdy, stable and not overloaded. All

shades and shelters must be tied down and completely secured in windy conditions or be

subject to immediate and uncompromised removal.

Vendors shall observe

all

fire lanes while loading and unloading.

B. Sanitation

Before any sales transactions are allowed, the vendor s area must be cleared and cleaned of

any produce trimmings or debris

of

any type. Absolutely no rubbish

of

any type will

be

allowed on the stall grounds, the consumer area directly surrounding the stall, or in any

other contiguous area that could constitute a health or safety issue. Any waste water

generated during the market for washing

of

produce or utensils must be collected by the

vendor, removed from the market area in a container with a lid, and properly disposed of at

the vendor s farm or business.


18/29



Peter ipponeri

Farms

LLC

RULES REGULATIONS

Before the vendor may leave a market, both its stall the surrounding area must be free

of

any produce and debris. Vendor's shall remove and properly dispose of all trash. Failure

to

follow the above referenced issues will result

in

revocation of the vendor's stall space and a

fine.

No

live animals shall be kept or allowed within 20 feet

of

any area where food is stored or

kept for sale. With the exception of service animals, no animals are allowed at the Markets.

C. Signage

Vendors must post a conspicuous sign or banner at the point of sale that states the name of the

vendor's farm, ranch or establishment and the city or town where their production occurs

and a statement that WE GROW

WH T

WE RE SELLING or WE RAISED WHAT

WE RE SELLING or WE

GROW

WH T WE SELL or similar phrases that clearly

represent that the vendor is only selling products that they themselves have grown, raised

or

produced

on

California land that they possess or control.

All vendors selling unpasteurized almonds or milk/dairy products shall be required to

display a PCF -approved warning sign indicating the possible health risks related

to

consuming unpasteurized products. This warning statement must also appear on the label

of the unpasteurized products.

VII. SAMPLING

Sampling of products is allowed only so long as the sampling procedures are in compliance with

state and county regulations concerning the safe distribution

of

food products. PCF may issue its

own sampling guidelines that are more

r e s t r i c t i v ~

than those

of

the state or county.

VIII. NOISE

No J;IlUSic is allowed to be played \during market sales hours. No loud hawking, barking or

shoutil)g to promote product

is

allowed. All product promotion must occur within the space

assigned

to

the producer and not in any common area. Disruptive action in the market

is

prohibited.

IX

SIGNAGE

Vendors must display a sign identifying their name or the name

of

their establishment and the city

or town where their production occurs.

Vendors selling certifiable agricultural products must display on the sign which bears the name

of

their establishment the phrase We grow what we are selling

in

letters not less than

1 5

inches

in

height in a clear style with sufficient contrast between the color

of

the lettering_ n d the color

of

the

background. Said sign shall be visible to shoppers at all times during f a n n e r s ~ m a r k e t s

operating hours.


19/29



A T C ~ M E /J r A


RULES

REGUL TIONS

All producers selling unpasteurized almonds or milk/dairy products shall be required to display a

PCF -approved warning sign indicating the possible health risks related to consuming

unpasteurized products. This warning statement must also appear on the label of

the

unpasteurized products .

All vendors selling processed agriculture shall do so in accordance with relevant local, state and .

federal laws and regulations, including, without limitation, the packaging requirements set forth m

Food & Agricultural Code §47004(c)(2).

X

ONDU T

Vendors are expected to conduct themselves in a safe and courteous manner.

No

rude, abusive,

insulting, disruptive, or threatening behavior . is permitted.

Any statement and/or action which

is

deemed to be offensive, abusive, or otherwise inappropriate

to

a customer, market manager, market staff person, attending producer, PCF staff person,

sponsor, or any official from a city, county or state agency conducting business within the market

parameters, will be considered a violation to these market rules and will be subject to any or all

disciplinary steps indicated in these market rules.

All vendors shall sell/market their products in a manner satisfactory to the Market Manager and

in

an honest, conscientious and business-like manner.

XI.

RE ORD

AUDITS

Upon request, vendors shall provide PCF with access to any and all of the vendors' business

records reasonably necessary for PCF to confirm the vendor's compliance with local, state and

federal laws

and

regulations that pertain to direct marketing in California.

XII. INSURANCE AND INDEMNITY

All vendors shall, at their expense, procure and maintain insurance on all

of

their operations, in

companies admitted and qualified in California, having a minimum A.M. Best rating

of

A-VII,

and

acceptable to PCF, as follows :

(i)

Comprehensive General Liability Insurance, , in the amount

of

$1,000,000 per occurrence, $2,000,000 General Aggregate and ( i) automobile liability insurance

covering bodily injuries (including death) in the amount of $1,000,000 Bodily Injury and Property

Damage Combined Single Limit Per Accident.

Vend or further agrees to provide and maintain Workers' Compensation Insurance in conformity with

the laws ofthe State

of

California and Employer's Liability Insurance in the amount of$1,000,000 per

occurrence. PCF and the public agency sponsoring the market and their respective partners, officers,

directors and employees shall

be

named as Additional Insureds under the vendor's Comprehensive

General Liability and Automobile policies. The policies shall stipulate that the insurance afforded the

Additional Insureds shall apply as primary insurance and that any other insurance carried by PCF, the

public agency sponsoring the market and their respective partners, officers, directors and employees,

-


20/29



ATTACf-tMl=f ST A

Peter Cipponeri Farms, LL

RULES

REGUL TIONS

will

be

excess only and will not contribute with vendor's insurance.

Vendors shall provide Certificates of Insurance, or other evidence of insurance as requested

by PCF

The certificates shall provide that there will be no cancellation or reduction

of

limits without thirty (30)

days prior written notice to PCF .

With the exception that this section shall in no event be construed to require indemnification by vendor

to a greater extent than permitted under the statutes or public policy of the State of California,

any

vendor that is admitted to sell produce at a Cipponeri Market agrees to defend, indemnify and hold

harmless PCF and any public agency sponsoring the market, including each of their officers, members,

directors, partners, joint venturers, employees, agents, affiliates, parents and subsidiaries, and each of

them ( Indemnified Parties ) from and against any and claims, demands, causes of action, damages,

costs, expenses, including actual attorneys' fees, expert fees or consultant fees, losses or liability, of

every kind and nature whatsoever ( Claims ) arising out of or in connection with the vendors

participation at a Cipponeri Market. Vendor's duties under this section shall apply to Claims for, but

not limited to, (a) personal injury, including, but not limited to, bodily injury, emotional injury,

sickness, disease, or death to persons and/or damage to property

of

anyone (including Joss of

use

thereof); (b) damages and penalties imposed on account

of

any violation

of

any law, order, citation,

rule, regulation, standard, ordinance or statute, caused

by

the action or inaction of vendor; (c) claims

of

infringement or violation

of

any copyrights, patent rights or similar rights; and (d) any failure or

alleged failure to comply with the terms of these Rules.

The defense and indemnification requirements

of

this section shall extend to Claims occurring before

and after the vendor's rights to participate at a Cipponeri Market are terminated . Vendor's defense and

indemnity obligations under this section shall not be limited by the insurance requirements set forth

above, nor shall the insurance provisions

be

limited by the scope

of

this indemnity.

If it is finally determined

by

a court

of

competent jurisdiction that any provision

in

this section is void

or unenforceable under governing law, then such provision shall

be

deemed stricken from the section

and the remaining provisions shall remain

in

full force and effect and shall be construed to provide for

the maximum defense and indemnification obligation by vendor permitted

by

law.

XIII.

INSPECTIONS

All

vendors shall make their points of production available to PCF or PCF s designated inspector

as

required to verify vendor s compliance with state law and these Rules.

XIV.

ORGANIC PRODUCTS

Any

v ~ n o r

selling organic products or representing products as organic shall conspicuously post at

the pomt

of

sale a photocopy

of

his/her/its current State

of

California organic registration.

If a vendor is selling both organic and non-organic products at the same stall, clear and concise

separatio.n of

the products and signage shall be required. Handlers must prevent the commingling

of orgamc products with non-organic products and protect organic products from contact with

prohibited substances.

-


21/29



ATTACI IMENT A

XV. FORMS

OF

P YMENT

Peter Cipponer i Farms, LLC

RULES REGUL TIONS

All

producers shall accept PCF approved methods.

of

customer payment, which include WIC

coupons

and

EBT

scrip . ·

XVI. PRICES

Product prices are

set

by individual vendors. All prices must be clearly posted. Collusion among

market participants to set prices is strictly forbidden.

XVII. SC LES

When any agricultural products are sold by weight, the type of scale used shall be approved by

the Department of Food and Agriculture, and shall be tested and sealed for use by the county

sealer-director

ofweights

and measures.

XVIII.

P RKING

W b ~ I _ p o ~ s i l : _ ~ e ver1dors w i l ~ __ e

p r o v

vehicle parking at their stall spac.e When space is not

available, vendors must park off-site in designated-off-site vendor parking.

XIX. LOAD SHEETS

At the end of each market day, vendors will complete and submit to the Market Manager an

itemized list

of

all products sold at the market. The list shall state the name of the certified

producer, the identity of each product sold as it appears on the certified producer s certificate, and

the quantity of each product sold at the market, including all processed agricultural products.

XX. VIOL TIONS

A. Violations and Penalties

PCF s governing body and its agents may issue warnings, written violations, fines,

suspensions, and/or remove a vendor from any market, or have any selling privilege at a

Market curtailed, for failure to comply with these Rules and all other applicable local,

state or federal laws and regulations.

The severity

of

the penalty will be decoded at the reasoned discretion

of

the PCF governing

body or its designated agents based upon the nature and repetition

of

the violation. Vendors

are responsible for the actions of their agents and employees .

B. Procedure

for Fines, Suspensions and Removal

For violations that result in a fine, suspension or removal, PCF will provide the vendor

with a written Notice

of

Violation the includes the factual basis for the violation and the

penalty .

- 7


22/29



LICENSE AGREEMENT

THIS LICENSE AGREEMENT dated , 2015 , between TH CITY OF CARMEL-

BY-THE-SEA, a municipal corporation (hereinafter City ) and PETER CIPPONERJ FARMS, LLC

(hereinafter Operator ) is made with reference to the following facts:

A. City

is

the

owner

of

certain real property and all public streets located within City.

B. Operator desires to operate a farmers market (hereinafter Market ) within the City and the City

is willing to grant a revocable license to Operator to use and occupy the License Area for the

purposes authorized by this Agreement, subject to all of the terms and conditions hereinafter set

forth. City reserves the right, in its sole discretion, to relocate the Market to any location within

the City upon ninety (90) days written notice to Operator of its intention to relocate.

NOW THEREFORE it is agreed as follows:

I , Grant o License. City hereby grants to Operator a revocable license to use and occupy a portion

of the City for the purpose of operating a Market wherein participating merchants will be

engaged

in

the retail sale

of

agricultural products and other items customarily offered at a farmers

market for sale to the general public. Operator agrees to adhere to the guidelines regarding the

composition of vendors, products and aesthetic requirements established by the City. The license

granted herein shall authorize use and occupancy

of

the Market location only by Operator and its

authorized agents and participating merchants (hereinaf ter Participating Merchants ) who are

engaged in operation of the Market pursuant to an agreement with Operator. The agreement

between Operator and Participating Merchants, attached as EXHIBIT A and incorporated

herein by this reference, shall require each Participating Merchant to comply with all of the

applicable conditions and requirements set forth in EXHIBIT A .

2

License Area. The area to be occupied

by

Operator (hereinafter License Area ) shall be on 6

1

h

Avenue between Mission and Junipero Streets, Cam1el-by-the-Sea, California, as defined in

EXHIBIT B attached hereto and incorporated herein by this reference. Once established, the total

number

of

booths shall not be increased without prior written approval

of

the City Administrator or

his/her designee. n the event City permits Operator to operate on property currently

in

use as a

public parking lot, Operator agrees to accommodate monthly parking permit holders and those

vehicles authorized by the City in an area designated by the City inside the parking lot.

3 Condition o License Area. Use of the License Area

is

being granted to Operator in its present

condition and City shall have no obligation to make any alterations or improvements to the

License Area to accommodate Operator's use. Operator acknowledges that City has made no

representations or warranties concerning the condition of the License Area or its suitability for

Operator's intended use. t shall be the sole responsibility of Operator to conduct such inspections

of the License Area as it deems necessary to satisfy itself that the License Area can be used for the

purposes intended by Operator and its Participating Merchants. Operator fUiiher acknowledges

that no water, electricity,

or

other utility service will be provided by City to the License Area;

however, depending on the License Area and at the request of Operator, City may provide

electrical service through existing City electrical outlets available at License Area at the same

cost as normally charged by City to persons using electricity

in

connection with the conduct of an

event at the Licensed Area. All electrical installations and connections shall be subject to

approval by the Director

of

Public Services or his/her designated representative.

4 Time o Operation. t

is

anticipated that the Market will be operated by Operator on Thursdays

between the hours

of

I OA.M. and 2 P.M. , with setup to begin at 8A.M. and teardown from 2P.M. to

4P.M. from , 2015 to . The Market will continue to


23/29



TT CH

f tE:t JT

operate during these established hours during any granted extension period unless modified by the

direction of the City Administrator.

5. Term of License. The initial term of this license shall be for a period of twelve (12) months,

commencing on and ending on . Operator may request

extensions of the term for additional periods of twelve (12) months each by submitting a written

request for extension to the City Administrator prior to expiration of the current term. Nothing

herein shall obligate City to grant an extension of the initial term or any renewal term, and the

granting of one or more extensions shall not prevent City from refusing to grant any later

extension.

6.

Termination of License

Prior

to Expiration of

urrent

Term.

Operator may terminate the

license at any time during the initial or any extended term by giving written notice to the City

Administrator stating the effective date

of

termination. City reserves the right to terminate the

license prior to expiration of the initial term or any renewal term, with respect to all or any portion of

the License Area, upon fifteen (

15)

days prior written notice to Operator,

in

the event City requires

use of the License Area for any public purpose and such use cannot reasonably be conducted at an

alternative location, or

if

the Director

of

Public Services determines that the operation

ofthe

Market

is

causing damage to the Licensed Area or creates a traffic or health or safety hazard. City may also

terminate the license

in

the event

of

any default by Operator

in

the performance

of

its obligations

under this Agreement and such default

is

not cured within ten 1 0) days after written notice thereof

delivered to Operator, or such other period oftime as may be specified

in

the notice.

7.

Permitted Uses. The License Area shall be used and occupied by Operator solely for the purpose

of

operating the Market and related activities, such as entertainment for shoppers, and for no

other purpose without the prior written approval of City. Amplified sound may be utilized by the

market manager

or

, within current City sound regulations, used for musical entertainment;

however, no amplified sound

of any kind shall be used by vendors. All Participating Merchants

shall be instructed by Operator to park their vehicles in spaces designated by the City. City shall

have no responsibility for providing security service for the License Area or operation of the

Market therein, other than normal police patrols that are routinely conducted within City.

8.

Compliance with Legal Requirements.

Operator and its Participating Merchants shall strictly

comply with all applicable federal , state and local laws and regulations concerning transportation,

handling, storage, and sale of food and other products offered for sale by the Participating

Merchants at the Market. Operator shall strictly comply with all applicable laws, ordinances and

regulations pertaining to the operation of a farmers market. Prior to commencement of the first

market day, Operator shall obtain and require each vendor to obtain a City of Carmel-by-the-Sea

Business License and Operator shall keep and maintain such licenses in full force and effect at all

times during the term of this License Agreement.

9. Clean-up on Market Days. Upon the conclusion of each Market day, Operator and its

Participating Merchants shall thoroughly clean the License Area, remove all trash, waste, and

debris to the available trash receptacles provided by the City, and restore the License Area to

substantially the same condition as existed before the conduct of the event, including the repair of

any damage to City property resulting from the market activities. Should the trash, waste and

debris exceed the capacity

of

the trash receptacles currently available, Operator will provide

additional receptacles. No storage of materials will be allowed on site.

10. Indemnity. Operator agrees to indemnity, defend, and hold City, and its officers, officials, boards,

commissions , employees, and agents, harmless from and against any and all claims, demands,

causes

of

action, liabilities, costs

or

expenses, including attorney s fees , occasion by

or in

any way

connected with the condition, use or misuse

of

the License Area or the operation

of

a farmers

market thereon, or occasioned by any negligent act or omission of Operator or its Participating


24/29



11 Liability Insurance During the term of this License Agreement, Operator shall procure and

maintain

in

full force and effect at Operator's expense: i) comprehensive general liability insurance

with

an

aggregate limit of not less than One Million Dollars

( 1

,000 ,000.00) per occurrence,

($2 ,000 ,000.00 aggregate) ; automobile liability insurance with a minimum of

1

,000 ,000.00 limit

per accident; and Workers '

Compensation

Insurance as required by the State

of

California; and

employer ' s liability insurance with a minimum 1 ,000,000.00 limit per accident insuring against

all liability of Operator and City for bodily injury and property damage arising

out

of or in

connection with Operator's, use and occupancy

ofthe

License Area and also insuring performance

by Operator) of the indemnity provisions set for in Section I 0 of this License Agreement. The City

shall be named as an additional insured. Operator shall provide City with the necessary Certificates

of

Insurance evidencing City as extra insured to the City Clerk.

The amount

of such general

liability insurance shall not limit Operator's liability nor relieve Operator

of

any obligations under

this License Agreement. The general liability insurance policy shall name City, and its officers,

officials, boards,

commissions

, employees , agents, and volunteers as insured parties there under,

and shall be endorsed to provide

that

(i) the insurance coverage there under shall be primary with

respect to City; and (

ii

) no cancellation or reduction

in

coverage will be made without ten (1 0) days

prior written notice to City by the carrier.

12 Notices Any notice required or permitted to be given hereunder shall be

in

writing and shall be

mailed or personally delivered to the other party at the following address:

City of Carmel-by-the-Sea City Administrator

POBox

CC

Carmel-by-the-Sea, CA 93921


3231 E. Hawkeye Ave.

Turlock, CA 95380

Attn: Peter Cipponeri , Director of Operations

13 Logo Operator' s proposed logo as included in EXHIBIT C

14 Cost

o

Suit In the event legal action between City and Operator shall become necessary

in

order to

enforce or interpret this License Agreement,

or

any provision contained herein, the prevailing party

shall be entitled to recover all costs and expenses that may be incurred in connection therewith,

including reasonable at torney's fees.

15 No Assignment This License

is

personal to Operator and may not be assigned

or

transferred to

any other party without the prior written consent

of

City.

16 Successors and Assigns Subject to the restrictions against assignment by Operator, this License

Agreement

shall be binding upon and inure to the benefit

of

the respective heirs, executors,

administrators, personal representatives, successors and assigns of the parties hereto.

17 Governing Law and Jurisdiction City and Operator understand and agree that the laws ofthe State

of

California shall govern the rights, obligations, duties, and liabilities

of

the parties to this Agreement

and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall

take place

in

Monterey County, or the federal district court with jurisdiction over the City. Operator

agrees not to commence or prosecute any dispute arising out of or in connection with this Agreement

other than in the aforementioned courts and irrevocably consents to the exclusive personal jurisdiction

and venue

of

the aforementioned courts.

18 Authority to Execute This Agreement The person or persons executing this Agreement on behalf of

Operator warrants and represents that he/she has the authority to execute this Agreement on behalf

of

the Operator and

ha

s the authority to bind Operator to the performance

of

its obligations hereunder.


25/29



19. Agreement Contains All Understandings: Amendment. This Agreement contains the entire

understanding between the parties relating to the obligations of the parties described

in

this Agreement.

All prior or contemporaneous agreements, understandings, representations, and statements, oral or

written, are merged into this Agreement and shall be

of

no further force or effect. Each party

is

entering

into this Agreement based solely upon the representations set forth herein and upon each party's own

independent investigation

of

any and all facts such party deems material. Any modifications or

amendment to this Agreement must be

in

writing. Neither City nor Operator shall be deemed to have

waived any obligation ofthe other, or to have agreed to any modification to this Agreement unless it

is

in

writing, and signed by the party giving the waiver.

20. Conflict. n the event of conflict or issue between the terms of his Agreement and Operator's Response

to Request for Proposal, attached hereto as EXHIBIT C or other communication between the parties,

the terms of this Agreement and relevant City guidelines shall control.

21. Severability.

If

any term of this Agreement

is

held invalid by a court

of

competent jurisdiction or

arbitrator the remainder ofthis Agreement shall remain in effect.

IN WITNESS WHEREOF

the parties have

executed

this License Agreement the day

and year

first

above

written.

CITY OF CARMEL BY THE-SEA ( City )

By

__________City Administrator

PETER CIPPONERI FARMS , LLC ( Operator )

By:


26/29



EXHIBIT A

RULES

REGULATIONS


27/29



EXHIBIT "B"

LICENSE AREA

As defined, the License Area is that area located on 6

1

h

A venue between Junipero and Mission

Streets as shown in the map below:

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28/29



EXHIBIT C

Peter Cipponeri Farms LLC

RESPONSE TO REQUEST FOR PROPOSAL


29/29

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

RESOLUTION NO. 2015-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

AWARDING A CONTRACT TO OPERATE THE CARMEL-BY-THE-SEA FARMERS’MARKET TO PETER CIPPONERI FARMS, LLC AND AUTHORIZING STAFF TO WORK

WITH CIPPONERI FARMS ON THE OPERATIONAL GUIDELINES FOR THE MARKET

WHEREAS, the City of Carmel-by-the-Sea desires to operate a weekly Farmers’ Marketwithin the City; and

WHEREAS, the City of Carmel-by-the-Sea wishes to adopt revised guidelines underwhich its Farmers’ Market will operate; and

WHEREAS, the City of Carmel-by-the-Sea is the owner of the real property and public

street upon which the Farmers’ Market will operate; and

WHEREAS, the City wishes to enter into a contractual agreement to operate the City ofCarmel-by-the-Sea Farmers’ Market for an initial term of one year, which may be extended foradditional periods of twelve months upon approval by the City Administrator of Carmel-by-the-Sea.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OFCARMEL-BY-THE-SEA DOES:

1. Award a contract to operate the Carmel-by-the-Sea Farmers’ Market to Peter Cipponeri Farms, LLC.

2. Authorize staff to work with Cipponeri Farms on the operational guidelines for themarket

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEAthis 4th day of August, 2015, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS

SIGNED: ATTEST:

_______________________Jason Burnett, Mayor Lee Price, MMC, Interim City Clerk

ATTACHMENT - C

Documents

7.N Farmers’ Market to Peter Cipponeri Farms 8-04-15