TITLE
Recommendation to authorize City Manager to execute a license agreement with Ms.Lee Ostendorf for use of City-owned property in the parking lot adjacent to the northwest end of Marine Stadium, to conduct a certified farmers' market for a three-year term, with two, one-year renewal options, at the discretion of the City Manager or his designee. (District 3)
DISCUSSION
The City received a request from Ms. Lee Ostendorf (Licensee) to utilize a parking lot area adjacent to Marine Stadium, in order to conduct a certified farmers' market on Wednesday afternoons (map attached). The area designated for the farmers' market would utilize up to 100 parking spaces. The farmers' market continues to be a lively and economically attractive venture for the. City, and provides a venue for fresh foods and social interaction in the area. This farmers' market has been operating in this location since June 25, 2008, under a special events permit, which provided the Licensee with the time needed to acquire the necessary permit. The appropriate coastal permit was obtained on December 8, 2008. The decision to grant the permit was appealed to the Planning Commission, and subsequently denied on February 19, 2009. The decision was then appealed to the California Coastal Commission, who indicated no substantial issue and upheld the permit on May 6, 2009.
Gross market sales are expected to start modestly at first, with an estimated $100,000 in annual gross revenue. The City would receive one percent of gross market revenue, paid quarterly, which is consistent with other farmers' markets doing business in the City. The Alamitos Bayfarmers' market pays half of the one percent to the City and half to Bancap. The Licensee shall begin setting up for the farmers' market no earlier than 1 :00 p.m., and shall vacate the premises by 9:00 p.m. The hours of operation may be extended or modified, subject to the approval of the Director of Parks, Recreation and Marine. The farmers' market has proven to be a benefit to the community, and staff recommends that a license agreement be executed, with the following provisions:
· Premises: Up to 100 City-owned parking spaces, adjacent to the northwest end of Marine Stadium, or at an alternate location determined by the Director of Parks, Recreation and Marine.
· Permitted Use: Licensee shall use the premises on Wednesdays, for the sale of fresh fruit and vegetables, eggs, cuUlowers, decorative plants, seafood, honey, and other items, as approved by the Director of Parks, Recreation and Marine.
· Maintenance: Licensee shall be responsible for cleaning up the premises and hauling away their own trash.
· Term: The license agreement will have an initial term of three years, with two, one-year renewal options, at the discretion of the City Manager or his designee.
· License Fee: Licensee shall pay a license fee of one percent of gross market revenue on a quarterly basis, Should the City incur any costs associated with the Licensee's use of the premises, Licensee shall reimburse the City for the expense.
· Insurance: Licensee shall provide insurance coverage as defined by the City's Risk Management Office.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on April 15, 2010, and Budget Management Officer Victoria Bell, on April 23, 2010.
TIMING CONSIDERATIONS
City Council action is requested on May 18, 2010, in order to enable the execution of the license agreement.
FISCAL IMPACT
Annual revenue in the amount of approximately $1,000 will accrue to the Tidelands Operating Fund (TF 401) in the Department of Parks, Recreation and Marine (PR).
There is no impact to local jobs associated with this request.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MARINE
NAME |
APPROVED: |
TITLE |
|
|
|
|
PATRICK H. WEST |
|
CITY MANAGER |