April 15, 2025
Agenda Item No. 13
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Lauren Wooding Whitlinger, Real Property Administrator - 949-644-3236, [email protected] TITLE:
Revocable License Agreement with Heritage Wellness Collective for Temporary Use of City Property for the Corona del Mar Farmers’ Market ABSTRACT:
The current agreement for the farmers’ market located on City-owned property in Corona del Mar is set to expire June 30, 2025. In compliance with the City’s procurement requirements, a Request for Proposals (RFP) was published in August 2024, to identify a qualified operator for continued operation. After a formal evaluation and interview process, Heritage Wellness Collective was selected as the most qualified and responsive proposer. For the City Council’s consideration is a new, five-year Revocable License Agreement (Agreement) (Attachment A) with Heritage Wellness Collective, for operation and management of the farmers’ market in Corona del Mar, including a request to waive City Council Policy F-7.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Authorize the City Manager and City Clerk to execute the Revocable License Agreement between the City of Newport Beach and Heritage Wellness Collective, for Temporary Use of the City Property for the Corona del Mar Community Market, in a form substantially similar to the agreement attached to the staff report; and c) Approve a waiver of City Council Policy F-7 – Income and Other Property based on the findings contained in the staff report and the Agreement, that charging less than fair market rent promotes the City’s goals to provide essential or unique services to the community, that cannot otherwise be provided if full market rates were charged.
DISCUSSION:
Since 1996, a certified farmers’ market has operated on City-owned public parking lots in Corona del Mar.
The market was initiated at the request of the market manager, Rick Heil, and local residents and began under a series of one-year encroachment permits. The initial permit was amended by the City Council in 1999, to allow for 10 additional one-year extensions, through 2009. In 2009, a five-year license agreement was approved, followed in 2014 by a new agreement with a five-year term and five-year option, set to expire on June 30, 2025 (Current License). The Current License is held by Rick Heil, who oversees and manages the weekly Corona del Mar Certified Farmers’ Market (CdM Market). The CdM Market operates on the City-owned lots at the corner of Marguerite Avenue and Bayside Drive and Larkspur Avenue and Bayside Drive, including a portion of the public right-of-way on Larkspur Avenue. The license area under the Current License is shown in Figure 1 below.
Figure 1
The CdM Market runs every Saturday morning and occupies 53 parking spaces between the two lots. The area is closed to vehicular traffic while the license area is being used for the CdM Market.
Under the Current License, the manager pays the City a license fee of $369.11 per month, or $4,429.32 per year. The CdM Market is limited to operating as a “certified farmers’ market” with “certified producers” as defined by the California Code of Regulations [Title 3, Sections 1392.2(d) and 1392.2(e)] with the appropriate permits and approvals from the State of California Department of Agriculture and the Orange County Health Department. The Current License allows for up to 40 vendors, with participation each week averaging around approximately 29 vendors.
Request for Proposals
City Council Policy F-7 – Income and Other Property (Policy F-7) establishes the selection process for all tenants utilizing City-owned real property assets. In anticipation of the expiration of the current license, and in accordance with Policy F-7, the City published RFP No. 2025-14 (Attachment B) in August 2024 to solicit bids for the use of City-owned property. The RFP was distributed through PlanetBids, the City’s web-based procurement portal, and was also emailed to more than 150 companies involved in operating and managing community and farmers markets throughout Southern California.
A mandatory pre-bid site walk was held on September 9, 2024, and proposals were due to the City by September 30, 2024.
The purpose of the RFP was to solicit proposals from qualified operators interested in managing a farmers’ market that builds on the offerings of the existing CdM Market while retaining the quality and diversity of certified farm vendors. Market operators were asked to include the following in their proposals:
Their ability to provide family friendly programming, special holiday events, and activities that drive engagement with local schools and businesses, and feature music performances by local artists and school bands; Their experience attracting high-quality vendors that offer organic produce from certified farmers, prepared foods and non-food items, with local artisans and businesses receiving a discounted rate to participate; A comprehensive plan detailing the proposed community market layout and vendor mix, with an information tent, a restroom, trash and recycling, and signage plan; and Information about the operator’s staffing and management of the necessary permits and licensing, safety and security, setup and operating guidelines was also required, as well as the marketing and outreach capabilities.
The proposed location of the community market is detailed in Figure 2 and includes a portion of Bayside Park (labeled as Lot 3) which is not included in the Current License.
Figure 2
Selection Process
The City received eight proposals to operate the CdM Market. The proposals were reviewed by a staff panel and scored based on the following criteria:
Qualifications and Experience of the Firm
Qualifications and Experience of Key Personnel and Staffing Method of Approach / Project Approach
Pricing for Participating Vendors
Proposers were required to have a minimum of five years’ experience delivering community or certified farmers’ markets for local governments with knowledgeable and experienced staff. The proposers’ ability to retain the mix and quality of products offered at the existing market, with the addition of food items for on-site consumption like coffee and juice drinks, bakery goods, and hot foods was of particular concern to the panel, as was a proposer’s ability to nimbly adjust the mix of vendors in response to community feedback, seasonal changes and trends. The proposers’ ideas and experience implementing special events and driving community engagement further determined the panel’s scoring of each proposal.
City staff conducted a thorough review of the proposals and interviewed the top candidates. Following the evaluation of the eight submitted proposals, in-person interviews with the five highest-scoring firms were held in December 2024. During the interviews, proposers were asked to present additional details to the panel regarding their proposed market layout, vendor mix, anticipated community engagement and special events, as well as their marketing strategies.
Table 1 below lists the eight companies that submitted proposals and their total weighted score, as well as their final overall ranking. The proposal from Heritage Wellness Collective stood out in the rankings as meeting the qualifications and requirements of the RFP and illustrated its capacity to successfully operate and expand the CdM Market’s vendor offerings, special events and programming, and community engagement.
Table 1
RFP Scoring
Proposer
Total Weighted Score
Rank after Interview
Heritage Wellness Collective
2,585
1 Farm & Craft Market
2,435
2 Orange County Farm Bureau
2,260
3 McGlynn Events
2,085
4 Corona del Mar Certified Farmers Market
2,080
5 B2G Consulting Pros (not interviewed)
2,025
6 Supporting Arms (not interviewed)
1,940
7 California Curated (not interviewed)
1,485
8 Heritage Wellness Collective
Heritage Wellness Collective, operating as Heritage Farmers Markets (Heritage), is a 501(c)(3) non-profit operator of community and certified farmers’ markets, with over 15-years’ experience developing and managing markets in Orange, Riverside, Los Angeles, and San Bernardino Counties. Currently operating seven successful weekly and bi-monthly markets around Southern California, Heritage is known for its high-quality, community-focused events. Heritage is also known for fostering a strong culinary experience, and curating markets boasting a mix of small local businesses, artisan vendors, and certified growers.
With a strong attention to detail and an emphasis on consistent aesthetics and cleanliness, Heritage creates welcoming, well-organized market environments that reflect the values of the communities it serves. Backed by a team of experienced professionals, Heritage is well-equipped to meet the City’s administrative requirements for permitting and insurance, efficiently managing vendor documentation through its online platform, and fostering engagement with local residents and businesses.
The co-founders of Heritage, Myisha Croom-Turner and Bing Turner, MPH, have coalesced their professional experience into operating successful community-based farmers’ markets. Myisha Turner had a 12-year public service career as an officer with the Los Angeles County Sheriff’s Department and now focuses on managing vendors and organizing the administrative requirements of the markets. Bing Turner has worked for over 25 years as a public health professional and researcher and leverages his knowledge and experience by connecting Heritage with organizations like the American Public Health Association and obtaining a 2024 USDA Farmers Market business accelerator grant. He also handles much of the community engagement, connecting with local businesses, attending local events and collaborating with schools. Lead Operations Director, Kemberly Nystul, is trained in public safety and market management and will be onsite and responsible for the weekly market operations. Heritage will look to hire two new market staff from the local community to assist Kemberly with the weekly onsite logistics of the market.
Proposed Farmers’ Market
Heritage proposes to operate the farmer’s market by retaining the existing vendors and producers and adding a number of new pre-packaged and prepared food vendors to complement the produce vendors and meet the interests of the community. Heritage will also introduce a handful of “hot” food vendors with unique items available for consumption at the market, aimed towards not pulling business away from local retail establishments. Heritage regularly seeks input and will update the market vendors and events based on customer feedback.
In addition to the market’s regular food offerings, Heritage will introduce and enhance attendees’ experience with periodic entertainment by local musicians, and seasonal events like pumpkin decorating kids’ crafts, farm-to-table dinner fundraisers, earth day eco-friendly activities, and giveaways.
Seeking to provide the community with a seamless transition between market managers, Heritage has contacted the current CdM Market vendors to invite their continued participation in the farmers’ market and has so far received positive feedback and interest from almost a dozen vendors.
If the agreement is approved, Heritage has committed to commencing operations beginning in May, at the City’s direction.
With an emphasis on safety and security, Heritage will be required to adhere to new operating conditions to limit vehicular access points and improve pedestrian areas of the market. Appropriate permits will also be obtained from the Fire Department to ensure the safety of the new food vendors that will be cooking onsite. Heritage’s proposed market layout and site plan is shown on Attachment C.
City Council Policy F-7, Income and Other Property
Due to the unique services provided to the community, and the income and operational limitations of managing a weekly market, a nominal amount of rent is proposed in the Agreement to offset some of the City’s administrative costs and lost parking fee revenue. Staff believes the following findings can be made, as required by Policy F-7 (Attachment D) when less than fair market value rent is received, and a waiver is requested:
1. The CdM Market provides an essential or unique service to the community that might not otherwise be provided were full market value of the property be required; and
2. With the proposed rent charged at less than fair market value, the use provides an important amenity to the City and might not otherwise be provided were full fair market value of the property required.
Revocable License Agreement
The proposed terms of the Agreement are summarized below:
The initial term is 5 years, with one 5-year extension option, for a total possible term of 10 years, unless terminated earlier as provided by the Agreement.
A license fee in the amount of $6,000 per calendar year shall be paid by the market manager, with payments submitted to the City each month. The license fee shall be adjusted by the change in the Consumer Price Index (CPI) each year upon the anniversary of the effective date of the Agreement.
The market manager shall be responsible for obtaining the necessary permits and approvals from state and local agencies to operate the market and will be responsible for ensuring each of the vendors has the necessary permits and approvals for their individual businesses, including obtaining a City business license, if required. The requirement for a City business license shall be waived as a hardship for certified producers pursuant to Section 5.04.025 of the Newport Beach Municipal Code (NBMC).
The market may operate every Saturday from 9 a.m. to 1 p.m., with setup beginning no earlier than 7:30 a.m. and tear-down completed by 3 p.m., and the site returned to its original condition free of trash and debris.
Setup of the market shall include placement of traffic control bollards and signage as may be required by the City’s Public Works and/or Fire Departments.
The market operations must adhere to the NBMC noise restrictions and sound amplification requirements and the operator shall obtain the necessary permits and approvals.
A representative from Heritage shall be present onsite during each farmers’ market, from commencement of setup to completion of clean up.
Heritage shall provide certificates of insurance to the satisfaction of the City’s risk manager, naming the City as additional insured.
The Agreement has been reviewed by the City Attorney’s Office and has been approved as to form. Heritage has reviewed and approved the terms of the Agreement.
Public Input
While the results of the solicitation are not final until the City Council authorizes the Agreement, in the last several months there has been community interest and input regarding the RFP and the proposed change in management of the CdM Market. Staff attended the monthly Corona del Mar Residents Association meeting in March and provided an update on the process and timeline. Community members were not happy that the City was considering changing the CdM Market operator, and that they did not provide input to develop the scope of the RFP or participate in the selection process. Correspondence from the public that has been directed to City Council, and which was received by April 8, 2025, at 12 p.m., is included in Attachment E.
FISCAL IMPACT:
Revenues collected pursuant to the proposed Agreement, $6,000.00 per year as adjusted annually by the change in CPI, will continue to be posted to the General Fund (01050505) accounts in the Community Development Department and will be included in future years’ budgets.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Revocable License Agreement
Attachment B – RFP No. 2025-14
Attachment C – Market Site Plan
Attachment D – City Council Policy F-7
Attachment E – Public Comments
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Revocable License Agreement with Heritage Wellness Collective for Temporary Use of City Property for the Corona del Mar Farmers’ Market April 15, 2025
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