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STUDY STUDY SESSION MEMORANDUM 3.1
TO: Mayor and Town Council August 10, 2021
SUBJECT: Discuss Possible Addition of Beer and Wine Vendors to Farmers Market
BACKGROUND
The Pacific Coast Farmers Market (the “Market”) has operated at the Railroad Avenue
Parking Lot since 1990. Operation of the Market, including the type and number of
permitted vendors, is controlled by the terms of an Encroachment Permit/Right of Entry
(the “Permit”) issued by the Town. The current Permit runs through May of 2022.
At the Town Council’s Study Session of July 13, 2021, the Council d irected staff to bring
back a discussion of adding additional types of vendors to the permitted list. Specifically,
the Council asked for information about potentially adding wine and/or beer vendors to
the market. This report provides information regarding the legal standards for adding
such vendors.
DISCUSSION
The California Department of Alcoholic Beverage Control (“ABC”) has two different
licenses allowing for the sale of wine or beer at certified farmer’s markets, which contain
the following provisions:
• License Type 79 allows an already licensed winegrower to sell “wine produced
and bottled by the winegrower entirely from grapes grown by the winegrower….”
• License Type 84 allows a Beer Manufacturer or Small Beer Manufacturer to sell
“sealed containers of beer for off-site consumption….”
Both of these licenses also allow the vendor to provide “instructional tasting” at a Farmers
Market. For wine, the limit is 3 ounces per individual per day, for beer the limit is 8
ounces. In both cases, the tasting must occur within a roped off area. In addition to the
ABC requirements, the Town’s ordinance regulating consumption of alcohol in a public
place would require the Council to approve the tastings as part of any amendment to the
Permit.
Town staff has reached out to the operators of the Market to seek their opinion on adding
these types of vendors and will pass along any feedback. We do know that of the
Farmers Market Vendors 2 August 10, 2021
approximately 40 markets operated by Pacific Coast Farmers Market, at this point only 3
allow beer or wine vendors.
RECOMMENDATION
Provide direction to Town staff regarding any desired changes to the existing
Encroachment Permit to allow for beer or wine vendors to be permitted at the Market.
Prepared by:
Robert B. Ewing
City Attorney
Attachment: Farmers Market Encroachment Permit
2019
ENCROACHMENT PERMIT/RIGHT OF ENTRY
This Amended Encroachment Permit/Right of Entry ("Encroachment Permit") is made
and entered into as of April 3, 1990, and amended on May 1, 1993, December 6, 1994,
February 21, 1995, April 20, 2004, May 16, 2006, March 2, 2010, March 31, 2013, April 12,
2016, and May X 2019 by and between the TOWN OF DANVILLE (hereinafter the
Town"), a California municipal governmental corporation and the PACIFIC COAST
FARMERS' MARKET ASSOCIATION (hereinafter the "Association"), a California non-
profit mutual benefit corporation.
RECITALS
1. The Association exists for the purpose of developing, organizing, operating and
managing "Certified Farmers' Markets" (as such term is defined in Section 27512
of the California Health and Safety Code/Article 6.5, Title 3 of the California
Administrative Code).
2. The Association desires to develop, organize, operate, maintain and manage a
Certified Farmers' Markets in the Town, on property owned and maintained by
the Town for the benefit of and use by members of the general public.
3. Town desires to permit such use by the Association, provided that the public
health, safety and welfare are not thereby impinged, diminished or adversely
affected.
4. This Encroachment Permit is granted by the Town and accepted by the Association
upon each and all of the conditions set forth herein, and by accepting the benefits
hereof the Association agrees to fully perform and observe such conditions.
PERMIT/RIGHT OF ENTRY
1. Permission is hereby granted for a period of three (3) years to the Association,
subject to paragraphs 8 and 9 below, to enter and use a portion of the municipal
parking lot located on the west side of Railroad Avenue as is located west of the
Southern Pacific Railroad Depot at the north end of the Railroad Avenue
Municipal Parking Lot, (hereinafter the "permitted area"), between the hours of
7:00 a.m. and 2:00 p.m., every Saturday, during the duration of the
Permit/ Agreement (see Exhibit 2 for "permitted area").
2. Nothing in this Agreement precludes a Town event or other exhibition that might
be scheduled in the downtown area during the hours of operation of the
Association. The Association will be notified as soon as possible of any road
2019 Encroachment Permit
closures in the downtown or road closures that might affect the Associations
vendors. A suggested detour map, if needed, will be printed in the local
newspapers the week before the Town event. In the event of a severe conflict of
interest, either the Association or the Town has the right to cancel a Saturday.
morning market with a 45 -day advance notice.
3. The use for which such Encroachment Permit is granted is the development,
organization, operation, maintenance and management of a Certified Farmers'
Market in accordance with and pursuant to all applicable laws and regulations of
the State of California, and for no other use or uses whatsoever.
4. The Association shall at all times observe and obey all applicable ordinances,
resolutions, rules and regulations of the Town, and shall promptly obey each and
all lawful orders given to it by the Town Manager or his/her named designee, any
officers of the Danville Police Department for public safety purposes, or by any
employee of the San Ramon Valley Fire Protection District or the Contra Costa
County Health Department.
5. The Association shall, at all times during which this Permit remains valid and in
effect, take out and maintain in full force and effect a policy or policies of public
liability insurance for the death or injury of any person or persons resulting from
or incidental to the use permitted hereby, in the amount of ONE MILLION
DOLLARS ($1,000,000). The Town, its members, officers, agents and employees
shall be named as an additional insured under such policy or policies. The
Association shall, prior to the initiation of the use, permitted hereby, supply the
Town with certified copies of such insurance policy or policies, or an acceptable
certificate thereof, which policy, policies or certificate shall provide that the insurer
shall give the Town thirty.(30) days advance written notice prior to its cancellation
of such policy or policies.
6. The Association agrees to indemnify, defend and hold the Town harmless from
and against any and all claims, actions, causes of action or liability of any kind or
nature whatsoever, for damages arising out of any injury to or death of any person
or persons, or property of any kind and to whosoever it may belong, including the
Town, on account of willful misconduct or negligent conduct on the part of
vendors onother persons compensated by the Association at the Farmers' Markets.
7. The Association shall keep and maintain the permitted area free and clear of any
and all trash, refuse, garbage, debris or litter arising from or incidental to its use of
the property as permitted hereby. The Association shall not commit, suffer to
permit any waste on the permitted area.
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2019 Encroachment Permit
8. The location of this Encroachment Permit may be changed by the Town if deemed
appropriate. The Association will be given no less than ninety (90) days advance
written notice of the proposed change to a location approved by both parties.
Distribution of any notice of change of location is the sole responsibility of the
Association. The Town shall not be liable to the Association for any costs,
expenses, fees, losses or damage of any kind or nature whatsoever on account of
its exercise of the right reserved in this paragraph.
9. This Encroachment Permit may not be revoked except upon 45 days' advance
written notice to the Association and in such event the Association shall have the
full right to complete and prepare an appeal of the revocation to the Town Council
and that pending completion of such appeal, the Encroachment Permit shall
remain valid and enforceable.
10. This Encroachment Permit may not be transferred or assigned to any other entity
without the prior written consent of the Town.
11. No property right is granted hereby; notwithstanding the foregoing, the
Association hereby knowingly waives and relinquishes any rights it may have or
claim to have pursuant to California Government Code, Sections .7260 through
7277.
12. In accordance with Ordinance 96-10, alcohol sales and consumption are prohibited
within Town public right-of-way (streets, sidewalks, parking lots, etc.).
13. Wherever the term "Pacific Coast Farmers' Market Association' is used herein,
such term shall mean, be interpreted and include the Association its members and
officers.
14., An "Operating Agreement" is attached hereto, marked. Exhibit 1, and
incorporated in full by this reference. Whenever a conflict arises between the
terms of Exhibit 1 and this Encroachment Permit, the terms of this Encroachment
Permit shall prevail.
15. Notices required hereby shall be deemed to have been fully given when served
personally on the Association or the Town or when deposited in the United States
mail, postage paid addressed as follows:
To the Town: Town of Danville
Attention: Economic Development Manager
510 La Gonda Way
Danville, CA 94526
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2019 Encroachment Permit
To the Association: Pacific Coast Farmers' Market Association
5060 Commercial Circle, Suite #A
Concord, CA 94520
Demonstrating our agreement with these provisions, we sign this document.
TOWN OF DANVILLE
31
Jo e H A.-Calabrigo
T n Manager
Dated: G
PACIFIC COAST FARMERS'
MARKET ASSOCIATION
By: 1 o. --4 2,
Allen oy
Executive Director,
Dated: 45 lZ l2 -"S e g
2019
OPERATING AGREEMENT
DANVILLE CERTIFIED FARMERS' MARKET
The Pacific Coast Farmers' Market Association (PCFMA) agrees to operate the Danville
Certified Farmers' Market (CFM) in Danville, California.
BACKGROUND
The Town of Danville is located in the heart of the San Ramon Valley. Danville features
a downtown shopping district offering customers an array of retail shops and
restaurants. To further enhance the community, Danville has hosted a Farmers' Market
once each week since 1990, where local growers bring their farm -fresh produce into town.
Shoppers enjoy purchasing vine/tree ripened fruit and vegetables, talking with the
growers, meeting their neighbors, tasting heirloom and specialty varieties and picking
up a new recipe.
Pacific Coast Farmers' Market Association
The Association, a non-profit, mutual benefit corporation dedicated to "Bringing the
Farm -to -the -City," operates other Certified Farmers' Markets in the San Francisco Bay
Area. With a grower organization of over 200 farms throughout California, PCFMA is
able to integrate Certified Farmers' Markets into city and regional centers and retail
shopping districts. This exciting concept in food shopping gives consumers the
opportunity to shop for fresh fruit and vegetables while visiting the Downtown.
Certified Farmers' Markets
In 1979, the California Department of Food and Agriculture developed a program to
authorize and encourage direct marketing of farm products to consumers through
Farmers' Markets, U -Pick, Roadside stands, etc. The Food and Agricultural Code was
amended to regulate the operation of CFM's. Under these regulations, county
agricultural commissioners verify that growers sell only the products they grow. No one
is allowed to buy products and resell them at CFMs. Only California -grown products
may be sold. A grower with a certificate from any county in California may sell at any
CFM in the state provided there is space to accommodate them.
Exhibit 1
2019 Operating Agreement
GENERAL PLAN
The Town of Danville agrees to sponsor a Certified Farmers' Market in Danville. The
Pacific Coast Farmers' Market Association will continue to operate a Certified Farmers'
Market according to this General Plan:
1. Market Development
A. Site Plan and Development
1. The market space is located west of the Southern Pacific Railroad Depot at
the north end of the Railroad Avenue Municipal parking lot (see Exhibit 2
map).
2. An analysis of traffic flow and parking accessibility and availability for
optimal Certified Farmers' Market operation while creating visits to
Danville's "Old Town' will continue to occur by the PCFMA and Town of
Danville, with adjustments made as necessary.
3. Organization Structure and Management
4. Pacific Coast Farmers' Market Association Board Members.
5. Implement action plan that will mutually benefit the Town of Danville and
the Certified Farmers' Market.
6. Employ Certified Farmers' Market Manager.
7. Modify rules and regulations for the market with reservation and seniority
policy.
B. Grower Recruitment and Coordination
1. Inform association members and recruit growers to yield number of growers
per market day that will provide a variety of quality agricultural products.
Recruit local fishermen to sell their "catch -of -the -day" directly to consumers.
2. Operations and Management
A. Train and supervise management of the Certified Farmers' Market.
B. Enforce state and local agricultural and health regulations. Serve as on-going
liaison with county agricultural commissioner.
C. Assure adherence to market rules and regulations, product quality, set-up
procedure and clean up. Perform and monitor site clean-up. Obtain feedback
from property management to assure adherence to the Town of Danville's
guidelines.
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2019 Operating Agreement
D. Market Day Systems: signage, information booth, Merchant at the Market booth,
Town Council booth, customer relations, and grower coordination.
E. Secure insurance: Provide copies of insurance policy to the Town of Danville
each year.
F. Non -Agricultural and Crafts Vendors Restrictions:
1. The Farmers' Market non-agricultural sellers will not exceed on average 25%
of all vendors, except during the months of October through April, the
percentage may be increased from 25% to 35% during, provided the
additional 10% increase consists of Danville based non-agricultural vendors.
2. Market categories are as follows:
3. All products sold at the Farmers' Market must be produced by the producer.
Buying and reselling of product is not permitted. Non-agricultural products
are juried by the Pacific Coast Farmers' Market Association's Board of
Directors on a yearly basis.
4. Craft vendors and artists do not fit into the product categories, and, therefore,
are not permitted at the Danville Farmers' Market, except for ancillary artisan
reusable products as listed above.
5. The weekly market report will state the number of non-agricultural vendors,
merchant booth, and attendance information.
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Ancillary Artisan
Agricultural Non- Agricultural Reusable Green
Products Market Products
Fruits Bakery/ Confectioner Market Tote Bags
Nuts/ Nut Butter Products Baskets
Vegetables Organic Meat/ Sausage
Nursery Stock Specialty Drinks
Cut Flowers Coffee/Tea/Water
Eggs Granola/ Baked Goods Services
Market Information BoothHoneyPasta/Sauces
Farm Raised Fish Prepackaged Foods Town Council Booth
Oils/Olives Prepared Food Merchant Booth
Pesto/ Jams/ Jellies Musical Entertainment
Beans Knife Sharpening
Cheese/ Dairy/ Butter
Ocean Fish and Shellfish
3. All products sold at the Farmers' Market must be produced by the producer.
Buying and reselling of product is not permitted. Non-agricultural products
are juried by the Pacific Coast Farmers' Market Association's Board of
Directors on a yearly basis.
4. Craft vendors and artists do not fit into the product categories, and, therefore,
are not permitted at the Danville Farmers' Market, except for ancillary artisan
reusable products as listed above.
5. The weekly market report will state the number of non-agricultural vendors,
merchant booth, and attendance information.
3
2019 Operating Agreement
G. Merchant at the Market Program & Government Organizations:
Guidelines for the Merchant at the Market Program are as follozi7s:
1. The business must be located in Danville;
2. The business must possess a valid Town business license;
3. Goods or services provided must be non-agricultural;
4. Businesses can only sell what they sell in their store;
5. No alcohol is permitted;
6. Vendors selling food items shall obtain all necessary health permits and
abide by all health department regulations;
7. Liability waiver and proof of insurance must be provided by merchant or
sponsoring merchants' group;
8. The booth shall be located in the non-agricultural section of the market;
9. PCFMA shall provide one table and table cloth for the Merchant at the
Market Program; The Merchant shall provide a 10 x 10 canopy shade
structure if desired.
10. The booth shall be identified as the "Merchant at the Market" booth, with a
poster explaining what the program is about and which business(es) is/ are
featured;
11. Preference for use of the booth shall be given to organized business groups
such as the Danville Area Chamber of Commerce and Danville based
businesses). The Danville Area Chamber of Commerce will manage the
schedule; which will be rotated each week by participating groups;
12. The overall program shall be managed by the PCFMA;
13. If the booth has not been reserved by the organization holding the time slot
for that week by the Wednesday prior to the Saturday market, then the booth
can be reserved on a first come/ first serve basis by one of the other business
organizations or a Danville based business;
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2019 Operating Agreement
Guidelines for the Government Organizations are as follows:
1. The organization must be a local or regional government agency that
provides service to all residents of Danville, and/or Contra Costa County
residents.
2. The program and resources offered must benefit all residents and
community members.
3. The government organization must be a nonpartisan government agency
that is not aligned, affiliated influenced or supporting any one political
party.
4. The participating organization shall be located in the "Merchant at the
Market" booth space only if the booth is not filled by a Danville Merchant
as defined above or if permission to share the booth has been granted by
the Merchant using the booth that week.
Town of Danville Toum Council Outreach
1. The market organizer shall provide a table for the Town Council to be
located inside the information booth weekly at a designated location
selected by the Town of Danville. The Information booth shall remain in
this same location each week.
H. Day and Hours of the Market
1. The Market shall operate between the hours of 9:00 a.m. and 1:00 p.m. every
Saturday.
2. Market vendors shall not set up prior to 7:00 a.m.
3. The PCFMA shall be responsible for maintaining the cleanliness within the
market limits after each event and shall be responsible for removing or
recycling trash which resulted from market activity.
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2019 Operating Agreement
3. Promotion
A. The PCFMA shall strive to develop programs that engage Danville retail and
restaurant businesses through cross promotion or direct participation.
B. The CFM Regional Manager shall meet with the Town of Danville at the end of
each year to identify opportunities where Market promotions, Town
promotions/ programs can be integrated in the marketing plan and operation of
the market.
C. A marketing plan, which includes promotion, publicity and community
outreach, shall be prepared by the PCFMA and sent to the Town of Danville prior
to March 1 of each year.
4. Communication
A. A representative of the Town of Danville will serve as on-going liaison with the
Danville CFM. Once each month, the Town representative, if desired, may meet
with the CFM Market Manager and/or a Director of PCFMA to determine the
progress of the development and operation of the Danville CFM. The CFM
Regional Manager shall notify the Town two weeks prior to appointing a new
Market Manager to the Danville CFM, or of any operational changes that may
affect the terms of this agreement.
B. Market reports on the Danville CFM will be sent to the representative of the
Town of Danville on a weekly basis. The report will describe the progress of the
CFM including operation, marketing, promotion, management and attendance.
A .copy of the PCFMA annual report will be sent to the representative of the
Town of Danville prior to March 1 of each year.
C. The PCFMA may be asked to provide the Town Council with a yearly update at
a regularly scheduled Town Council Meeting.
D. The representative of the Town of Danville, if desired, may attend the meeting
of the PCFMA Board of Directors once each quarter.
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Danville Farmers' Market
Encroachment Permit—Permitted Area
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