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 Carmelby-the-Sea Farmers Market to Peter Cipponeri Farms, LLC and
authorize staff to work with Cipponeri Farms on the operational
guidelines for the market

____________________________________________________________________________________________________________________________________________________

RECOMMENDATION(S):
Award a contract to operate the Carmel-by-the-Sea Farmers Market to Peter Cipponeri
Farms, LLC and authorize staff to work with Cipponeri Farms on the operational guidelines
for the market
EXECUTIVE SUMMARY:
Staff and the Farmers Market Ad Hoc Committee, based on direction provided by the City
Council at its November 3, 2014 meeting, are recommending that the City enter into a
contract with Peter Cipponeri Farms, LLC to operate the Citys Farmers Market.
Staff and the Ad Hoc Committee are also recommending that staff be given the authorization
to work with Cipponeri Farms on the markets 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 Citys 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 Citys
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

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, it is staff and the Ad Hoc Committee's opinion that the issuance of a new RFP would
very likely end in the same result as 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 Funding Source:

I Budgeted : N/A

N/A

APPROVED:

Date:
istrator

V-7 /s
Council Meeting Date: 08/04/2015
Agenda Item: 7 .N
Page 2

FARlvf.ER'S
lvfABE.ET

- - -- - - -- - -

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 3

Peter Cipponeri
Director of Operations
Peter Cipponeri Farms, LLC
3231 E. Hawkeye Ave
Turlock, CA 95380
(209) 678-4262
pcipponeri92@gmail .com
July 29, 2015
Ms. Janet Bombard
City of 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:

We appreciate the opportunity to submit our proposal to operate the Carmel-By-TheSea Certified Farmers' Market. We understand the City's goal of providing a communityoriented 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 of 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 of 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 of Operations

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 4

ATTAC~M E-t-JT

A.

TABLE OF CONTENTS
PAGE#
OUR BACKGROUND .. . .. .. .. .. . .. . .. . .. . .. . .. .. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . ..

. ... ...... ........ . ........ 1

MARKET OPERATIONS ... .. .. ....... .. .. .... .. ..... ............. ......... .. .. .. .... .. ..... . ....... ...... ..... .... 2
MARKETING STRATEGY .. . ... ............. .. .............. ...... ............... .. . ...... ... .. .... ................ 3
MARKET VENDORS ..... .......... .... ... ........ .. .. .. . .. . ... ..... . ....... ... ... ......... ..... .... ... .... . .. ... .... 4
OPERATING BUDGET .. ..................... . ... ... ... ..... . ..... . .. .... .. . .. .... ... .. . .... ............... .... ..... 5
RULES AND REGULATIONS ... ... ... ... .. . ...... ........... . ... ............... .. .......... ... .. . ..... .. .... ..... 6
INSURANCE ....... ... .. ...... .. .... ... .... ... ..... .... . ... ... ... .. ... . .. . ...... ....... ... ...... .... . ......... ... ...... 7

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 5

AtTACHMEtJT 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 ."
In 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 of 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 ish long-term , mean ingful
relationships with our customers . PCF
will continue to apply this philosophy to
its market operations .

Photo of Peter Cipponeri's great grandmother being

recognized for Cipponeri Family Farms' contributions
to San Francisco's farmers' market by former Mayor
Diane Feinstein.

CORE VALUES:

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 of 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 of Regulations 1392 .2.

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 6

ATTACHMCtJT 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 prepackaged 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 an 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 .

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 7

MARKETING STRATEGY
In 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:

FARMER'S
MARKET
Website:
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 restau rants 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.

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 8

A T"TAC~M

~f..JT

_A

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 by 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 of 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.

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 9

A7TAC+\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 of 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))

$25,250.00
$17 ,640.00
$3,400.00
$2 ,500.00
$8 ,450.00
$80.00

Total Expenses

$57,320.00

Estimated Income:

Stall fees

$31,200.00

Total Income

$31,200.00

Net Profit for the First Year of Operations

($26, 120.00)

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 10

RULES AND REGULATIONS

In 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. We encourage you to review the Rules and provide any
feedback or suggested changes .

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 11

A\TA.C+tU t:."-JT A

INSURANCE
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 of 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 policies will be in full force during the life of the license agreement and the City
will be named as an additional insured. Certificates of insurance will be provided to the City
upon request.

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 12

ATTACHME~ A

Rules & Regulations

(Adopted 2015)

Peter Cipponeri Farms, LLC

3231 E. Hawkeye Ave
Turlock, CA 95380
(209) 678-4262

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 13

ATTACI-\ME-NT

A
TABLE OF CONTENTS
PAGE#

I. Authority to Operate ... .... .. ....... ............... .. ....... . ...... ........ ... ........... ... .... ...... ... .... .... . .. 1

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
. ..................... ..... . ......... ... .. ... ............... ... .. ... .... ... ................... ... ....... .. . 4
Vll . S amp11ng
VIII. Noise ......... ......................... ................ ........ .... ... ........ .. ..... . .................. .... ...... 4
IX . Signage ................. .' ............... ... .................................... . ..... . ............... ............ 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

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 14

- - - -------.--------

ATIACHM.t=t-..lT A

Peter Cipponeri Farms, LLC

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, et 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.

Admission 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-

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 15

Peter Cipponeri Farms, LLC

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 of 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.
2.
3.
4.
5.

Maintenance of consumer-producer relationships.

Concerns about unsafe or unsanitary conditions.
Need to alleviate chronic overcrowding.
Empty spaces which need to be filled .
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 .
- 2Council Meeting Date: 08/04/2015
Agenda Item: 7.N
Page 16

Peter Cipponeri Farms, LLC

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 the 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. No
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.
- 3-

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 17

Peter Cipponeri Farms, LLC

RULES & REGULATIONS

Before the vendor may leave a market, both its stall i.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 WHAT WE ARE SELLING" or "WE RAISED WHAT
WE ARE SELLING" or "WE GROW WHAT 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 restrictiv~/ 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_an.d the color of the
background. Said sign shall be visible to shoppers at all times during the,'fanners~/market's
operating hours .

-4-

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 18

A TTAC~M E./Jr A
Peter Cipponeri Farms, LLC
RULES & REGULATIONS

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. CONDUCT
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. RECORD 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 (ii) 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,
- 5-

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 19

ATTACf-tMl=f'ST

A
Peter Cipponeri Farms, LLC
RULES & REGULATIONS

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~ndor 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.
- 6-

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 20

ATTACI-IMENT

A
Peter Cipponeri Farms, LLC

RULES & REGULATIONS

XV. FORMS OF PAYMENT

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. SCALES
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. PARKING
Wb~I)_po~sil:_)~e_, ver1dors wil~ __be prov_id~d vehicle parking at their stall spac.e: When space is not
available, vendors must park off-site in designated-off-site vendor parking.
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.
XIX.

XX. VIOLATIONS
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-

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 21

LICENSE AGREEMENT
THIS LICENSE AGREEMENT, dated
, 2015 , between THE CITY OF CARMELBY-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 of 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 (hereinafter "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 61h
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. In 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 of 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. It 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 of Operation. It 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

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 22

ATTACH f...tE:t.JT 8

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 Current 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

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 23

11.

12.

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.
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
Peter Cipponeri Farms, LLC
3231 E. Hawkeye Ave.
Turlock, CA 95380
Attn: Peter Cipponeri , Director of Operations

13.
14.

15.
16.
17.

18.

Logo. Operator' s proposed logo as included in EXHIBIT "C"

Cost of 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 attorney's fees.
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.
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.
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.
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 has the authority to bind Operator to the performance of its obligations hereunder.

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 24

19.

20.
21.

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.
Conflict. In the event of conflict or issue between the terms of this 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.
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: ---------------------------

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 25

EXHIBIT "A"
RULES & REGULATIONS

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 26

EXHIBIT "B"
LICENSE AREA

As defined, the License Area is that area located on 61h A venue between Junipero and Mission
Streets as shown in the map below:

...

~.

...

.~

-~

-1

:--;

c.;

--

-1~:~.-A

:.n

:-!::

-.:o--

'-

...

'

..

;J
-:::.,

"

!!._~

. ..
~

...;.,

:::.

:..
~

c._

'=!

c.

.;::;;

..

~-"

-r-

r.!r'

r-

- .,,

....

c..

c,

:.....

-. . .

.r.:

Vr

~=

.--

.......

,k

A .:

A '.:
.!:1

,-

-_

...

;:;J

""

c
l

r r

--=~

'le.
~

-.

,.,..

,...
~

P I " yhoL:se

..

fl

..)

-..

--

... ...

0.

--.--.

>("!

-=,.
'-:

1
.___

'.t"l

-. '

:::::l
~

.--

Vl

t.l

!:]
0

r.-.
- .

')

..

n. .~ ;s s on

(;J r

Pal '

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 27

EXHIBIT "C"
Peter Cipponeri Farms LLC
RESPONSE TO REQUEST FOR PROPOSAL

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 28

ATTACHMENT - C

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2015A 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 Market

within the City; and
WHEREAS, the City of Carmel-by-the-Sea wishes to adopt revised guidelines under
which 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 of
Carmel-by-the-Sea Farmers Market for an initial term of one year, which may be extended for
additional periods of twelve months upon approval by the City Administrator of Carmel-by-theSea.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
CARMEL-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 the
market
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
this 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

Council Meeting Date: 08/04/2015

Agenda Item: 7.N
Page 29