AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: CARLOS LUIS
ACTING COMMUNITY DEVELOPMENT DIRECTOR
SUSANA MARTINEZ
ASSOCIATE PLANNER
SUBJECT:
title
FARMERS MARKET RESEARCH UPDATE
summary
Summary:
On May 27, 2025, the City Council directed staff to research the requirements to establish a potential farmers’ market in Signal Hill. Staff researched, compiled information, and prepared an overview of three operational models including a City operated market, a market on public property, and a market on private property. Staff identified a total of five existing farmers’ markets within a 3.1-mile radius of the City. Staff also considered the potential costs associated with various operational models along with the level of financial participation and resource constraints on the City. Based on the analysis conducted thus far, staff recommends a privately operated model, as it has the least financial and staff impact on the City while having the potential to attract new consumers to local shopping centers in Signal Hill. The City Council could request that the Sustainable City Committee initiate the process of discussing a private market with a local operator and work with the local business community to identify a suitable location.
Strategic Plan Goal(s):
Goal No. 1: Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 3: Economic & Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.
Goal No. 5: High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
Provide staff with direction, as desired.
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Fiscal Impact:
There is minimal fiscal impact associated with the recommended action; any one-time or ongoing fiscal impact would be determined by the City Council’s direction and incorporated into the budget as appropriate.
Background:
In the mid-1990s, the City hosted a privately operated weekly farmers’ market that remained active for approximately one year. According to information gathered through conversations with former City staff, the market included seven to ten vendors that offered a range of locally produced goods. The City initially authorized the operation through a Temporary Use Permit; subsequently, the operator requested to incorporate the farmers’ market into the site’s Conditional Use Permit to formalize the activity and provide a clearer regulatory framework for continued operation. Although the market ultimately concluded after its first year, its operational history offers valuable insight into the permitting process, vendor participation levels, and community interest, and provides useful context if the City considers supporting similar market opportunities in the future.
The Sustainable City Committee (SCC) initially discussed the concept of a farmers’ market at its meeting of February 2021, and again more recently in May 2025. The discussion was centered on providing residents with sustainable locally grown food. In addition, farmers’ markets were seen as additional food purchasing options for the community. Through these discussions, the SCC formed a subcommittee to further research the topic and presented this information to the entire SCC. The SCC subcommittee includes two City Council Representatives, Council Member Robert Copeland, and Council Member Lori Woods.
At the May 13, 2025, City Council Meeting, Council Member Woods made a motion, and seconded by Mayor Jones, to further discuss the potential of a farmers’ market. The City Manager added this initial discussion item to the May 27, 2025, agenda, for City Council discussion. The City Council discussed possible locations, potential market saturation, and estimated costs. The City Council referenced the City’s previous farmers market as a basis for additional research. The City Council directed staff to conduct more research regarding the opportunity for a farmers’ market and provide an updated report at a later date.
Analysis:
Establishing a farmers’ market requires comprehensive research and planning to ensure the market meets community needs, attracts vendors, and operates sustainably. According to the “Starting a New Farmers Market” guide, prepared by University of California Small Farm Center, startup activities for the farmers market include articulating a vision and forming a core group of partners to assessing the feasibility of the market (Attachment A). Gathering key information and framework development is critical to starting a farmers’ market, including assessing the need, feasibility, and impact in the community. The section below highlights staff’s efforts to conduct initial research including the management of a farmers’ market, evaluating certified and non-certified markets, site selection criteria, and discussing three operating models for further consideration by the City Council.
Vendors and Management
A market manager generally oversees the day-to-day operations of the farmers’ market and manages vendor relations. The market manager coordinates with State, County, and Local agencies to obtain required licenses and permits, ensuring ongoing regulatory compliance. Market managers are responsible for recruiting and onboarding vendors, monitoring product diversity, addressing vendor concerns, and enforcing the market rules. A capable manager from the start can establish a clear system, build vendor relationships, and lay the foundation for a successful sustainable market. The structure of the market’s management will vary on the operational model selected.
Certified and Non-Certified Markets
The California Department of Food and Agriculture (CDFA) regulates Certified Farmers’ Markets (CFMs) to ensure product integrity, transparency, and support for local agriculture. CFMs are authorized under Title 3, California Code of Regulations (CCR) Section 1392. Both the CDFA and the Los Angeles County Agricultural Commissioner inspect and certify markets and producers. Farmers must obtain a Certified Producer’s Certificate (CPC), which lists the California-grown products they intend to sell. The Agricultural Commissioner verifies that each producer grows the crops listed on their CPC, and market managers check documentation at the market to enforce compliance.
According to the CDFA regulations, certified farmers may only sell products they personally grow in California. Certified markers benefit small farmers by creating a farmer-to-consumer pipeline, increasing profit margins. For these reasons, establishing a certified market is often more favorable, as it ensures that products are locally grown, sourced within California, and fully traceable. Non-certified markets operate outside the CDFA certification process. Vendors sell various goods, including crafts, imported foods, baked goods, or resold produce. Unlike certified markets, non-certified markets do not require vendors to grow their own products or to source them within California.
Market Viability
Staff conducted a preliminary review of local farmers’ markets and identified five markets within 3.1-miles from City Hall, with the nearest farmers’ market being located within 2.0 miles (Attachment B). The products offered by each market range from produce, nuts, herbs, prepared foods, artisan crafts, and other specialty items. According to the California Farmers’ Markets Association (CMFA), a farmers’ market should have access to a minimum of 30,000 households within three miles for a market offering 25 to 55 vendors. The CFMA recommends establishing a market at 'a good neighbor distance' from any nearby farmers markets but does not specify measurement. According to the United States Census Bureau the City has approximately 4,676 households.
Based on criteria from the CMFA, there appears to be a high concentration of existing markets within the area; therefore, the need for a farmers’ market may be conceivably met by the existing markets that serve the broader area. Oversaturation is important to evaluate given that when a market cannot be supported by the surrounding population, it will compete with established markets which may diminish its long-term viability. To further assess demand for a farmers’ market in Signal Hill, the City would need to conduct a more formal feasibility study to evaluate location, schedule, vendor mix, required infrastructure, community feedback, and funding models. The cost of a feasibility study could range up to $50,000 depending on the complexity and level of analysis requested.
Location and Site Criteria
Farmers’ markets require locations and sites that provide centrality, market visibility, attendance, parking, and operational efficiency. Other factors to consider include whether the location would be used on a temporary or permanent basis. A temporary location could be a way of assessing the success of the market and work by contracting a site for a predetermined period, usually one year, to determine if the location is suitable for long-term use. Farmer’s markets can operate on both publicly owned and private property. Factors to consider for markets on City owned property include staff time and City resources. In either case of a public or private farmer’s market, the site operator needs to consider capacity, and site needs as described below.
Operational efficiency is key for site selection, including ensuring the site would accommodate all vendors and their merchandise. Standard farmers’ market booths are typically 10 feet by 10 feet, though some vendors may require larger combined spaces, while others may need smaller 6-by-6-foot booths. As such, the site must be able to support these varying booth sizes, with 10-by-10 feet as the baseline. In addition to providing space for vendors’ products, the location of booths should allow for vendors to load and unload their merchandise and goods. The goal with the set-up logistics is to minimize setup time and allow for the safe transport of goods without disrupting surrounding traffic and causing congestion. The proposed site should have the necessary infrastructure, including water access for produce cleaning and handwashing stations, restrooms for vendors and patrons, electricity for refrigeration and vendor equipment.
Public transit accessibility and sufficient parking for patrons are important for site consideration. The City does not have specific parking standards for farmers’ markets; however, the County of Los Angeles (County) has set a minimum parking standard. The County parking standards require one parking space for each vendor plus one parking space for each vendor stall. The City could allow for a reduction in parking if the market is within half a mile of transit. The City would also need to consider parking requirements along with other standards when establishing a farmers’ market to ensure a potential site does not create challenges for patrons or nearby businesses or residences.
Coordination with the Signal Hill Police and Public Works Departments and the Los Angeles County Fire Department would be required for safety. Staff confirmed with the Signal Hill Police Department that a minimum of 20-50 feet of space is required at street intersection and vendor access points to install safety barriers, such as K-Rails; installation of these barriers would prevent vehicle intrusions. In addition, the market would need to provide a 20-foot fire lane for access, providing sufficient access for pedestrian traffic and fire access in the event of an emergency.
The SCC Subcommittee conceptually discussed potential public locations including Jessie Nelson Circle. Jessie Nelson Circle measures approximately 410 linear feet, with a street width of about 30 feet and a wider area in the cul-de-sac. Based on booth sizes, minimum emergency access, and pedestrian entrance requirements, Jessie Nelson Circle could potentially accommodate 28 to 30 vendors. The SCC subcommittee also discussed potential market days including a market on Sunday. Additional considerations include the frequency, day of the week, access to restrooms, and accommodation for accessibility. As noted below, staff’s preliminary research indicates that a farmer’s market on City property would require substantial resources from Public Works and the Library, Parks, and Recreation Department.
Alternatively, private property must be able to accommodate space for farmer’s market vendors, vendor and attendee parking, as well as parking for existing businesses. Utilizing private property would require discussions with and permission from the property owner. The City would be interested in evaluating the potential impacts to existing uses on private property, including parking and site circulation. If a market operator desired to establish and operate on private property, the City would review each on a case-by-case basis and involvement would be limited to permitting and regulations for safety.
Farmer’s Market Models
Staff evaluated three different operational models discussed below. The first model is the City-Operated (Public) Model, where the City assumes full responsibility for the administration, planning, and operational costs of the market. The second model is the
Public-Private Partnership Model, where the City partners with a non-profit or private operator to manage the day-to-day operations. Under this model, the City supports the market through contributions, partial funding, or the use of City-owned land and services. The third is the Privately Operated Farmers’ Market, where the City supports the farmers’ market through permitting on private property. There are various considerations associated with each model.
City-Operated Market
In the City-Operated model, the City assumes full responsibility for planning, managing, and operating the farmers’ market. City staff coordinates every aspect of the market, including site preparation, vendor recruitment, scheduling, on-site logistics, promotions, and ensuring compliance with federal, state, and local laws, including health code regulations. To successfully manage the market, the City would need to designate a department to manage and collaborate with other City departments to support the planning, set up, and ongoing operation of the market. This model provides the most oversight and accountability for the City, by directing programming, such as selecting vendors, and would require additional staff hours outside of the current budgeted allocation to allow for thorough review, research, preparation, and time to successfully launch and maintain operations.
A farmers’ market coordinator would remain onsite during each market, and staff would assign a point of contact to manage day-of operations and resolve troubleshooting needs. For a monthly weekend farmers’ market with thirty vendors, staff estimates a first-year operating cost of $150,000 to $200,000 for a City-operated market. This range reflects the cost of creating new positions, allocating staff hours, obtaining permits from outside agencies, and purchasing one-time equipment such as a trailer, a three-compartment sink, electrical infrastructure, and other necessary market supplies. After the first year, staff projects an ongoing annual cost of $100,000 to $150,000. Start-up and annual costs would vary depending on the size, location, and equipment requirements of the market.
The success of a City Operated Farmers’ Markets requires a coordinated effort across multiple City services. The Public Works Department would be essential for site preparation, including cleaning, setting up infrastructure (tents, tables, and waste disposal), as well as ensuring the overall accessibility of the market site. The Parks, Recreation, and Library Services would also play a role in coordinating use of public space and would need to assist with community engagement and programming. The Police Department would oversee public safety, including crowd control, traffic management, and ensure the market complies with local safety standards. Community Development would assist with review of application permitting and ensuring that all structures comply with the California Building Code. Finally, the Economic Development Division may assist with marketing efforts, identifying sponsorships, and working to attract vendors that align with the City’s Vision for the market.
Other agency requirements/approvals would include the Los Angeles County Department of Health, which would inspect food vendors to ensure compliance with health and safety regulations, including food handling and sanitation. The Los Angeles County Fire Department would review fire safety plans and ensure emergency access, especially if cooking or food preparation is taking place on-site. This model would have the most impact on the City financially, given the amount of staff time necessary to operate a farmers’ market. Staff does not recommend the City take on the amount of ongoing cost of potential liability associated with this model.
Public-Private Partnership
In a Public-Private Partnership Model, the City would provide essential infrastructure such as location, permits, and other resources (i.e. restrooms and street closures). The private operator would handle the day-to-day operations, including vendor recruitment, marketing, and event management. Public-Private markets typically attract a wider range of vendors due to moderate vendor fees, which are generally higher than those in public markets but lower than those in fully private markets. Similar to a City Operated Farmers’ Market model, a public-private farmers’ market model would continue to rely on coordinated efforts across multiple City departments. City staff would remain responsible for key functions such as site preparation, public safety, street closures, traffic control, permitting, and community engagement.
Representatives from a local operator presented at two SCC meetings, where they discussed details such as location, parking, market operating hours, and required resources. The operator initially quoted a $56,000 City contribution to cover the startup costs; however, the operator indicated it would provide staffing for setup, takedown, and during market hours, utilizing its own team to manage tasks such as assembling bathrooms and running the event. Additionally, the operator would take on liability insurance for the market. The operator would require the City’s support to provide public bathrooms. The approximate annual cost to the City potentially could be up to $50,000 annually given that there would still be costs related to Public Works and Library Service hours related to the reoccurring activities.
Privately Operated Market
Privately operated farmers’ markets are managed by individuals, businesses, or nonprofit organizations that bring entrepreneurial expertise and a strong focus on financial sustainability in a privately owned location. For example, a market operator may enter into an agreement with the owner of a large shopping center to setup the market. The shopping center owner and the market operator would present a shared proposal to the City to establish operating standards that include site plan, days and hours of operation, and addressing the site’s parking requirements usually through a temporary use permit and reduces the need for the City to engage its resources or create potential exposure for the market activity. This model is also market driven and would most likely produce a market that is financially sustainable. Another advantage of this model is that the market could generate new consumer traffic for the shopping center and attract more business to the area.
There are other advantages to this model in that private operators provide flexible management practices allowing the market to respond to changing vendors, consumer, and industry trends. This flexible management allows for timely decisions regarding vendor selection, hours of operation, branding, layout, and programming, resulting in a customer focused market. Furthermore, private markets can invest more into marketing and special events to elevate the market experience and attract consumers at a regional level. Private markets have the ability to secure sponsorships, pursue partnerships, and seek funding opportunities to strengthen the market’s financial position.
A private model provides operational efficiency by assuming responsibility for vendor coordination, fee collection, logistical planning, and on-site management. The private market manager would follow CFMA’s certification requirements, food handling regulations, and safety requirements ensure that markets operate consistently. The City can maintain regulatory oversight of privately operated farmers’ market by establishing specific standards within the municipal code. Staff would explore developing standards that address vendor eligibility, permitted hours of operation, market layout, waste management, safety protocols, on-site staffing expectations, and location minimums. As result, a private operator can provide a high quality, financially sustainable market that advances community priorities without placing additional operational responsibilities on the City.
Conclusion
While farmers’ markets provide some benefits for the community, several key considerations must be addressed. Initially, the City would need to better understand the potential saturation in the current environment for farmers’ markets. Similar to any other business operation, an oversaturated market could yield an underperforming asset that may require further public subsidy that would otherwise not succeed through its own economic initiative. The market would also compete with established regional markets for both customers and vendors, which may impact attendance and sales in the initial years. As noted previously, there are currently other markets within a short radius of Signal Hill, which could largely satisfy current demand. Table 1 below provides a comparison of the farmer’s market operational models during its initial year.
TABLE 1
|
Model Comparison Summary |
|
Model |
City Role |
Estimated Cost to City |
Level of Control |
|
City Operated |
High |
$150,000 to $200,000/first year $100,000 to $150,000 /annually |
Full |
|
Public-Private Partnership |
Moderate |
$50,000/annually |
Shared |
|
Privately Owned |
Low |
Minimal (Permitting) |
Limited |
As noted above, startup costs and annual operating expenses can be significant, particularly if the City is fully responsible for management and expenses. Recruiting and retaining a diverse group of vendors requires ongoing oversight, as vendors must comply with licensing and permitting requirements. Logistical challenges include securing an appropriate site, ensuring adequate parking and accessibility, and addressing impacts on surrounding neighborhoods such as traffic and noise. Ongoing staffing and marketing would be essential to build and maintain patron engagement. Finally, long-term viability requires consistent monitoring, adaptation, and community support, as farmers’ markets evolve with customer demand and economic conditions to succeed.
Staff also examined the ownership and management models, such as creating a public, private, or public-private partnership to determine the approach that best balances City oversight, operational efficiency, and financial sustainability for both the startup of the market and annual establishment. Given this information, should the City Council direct staff to pursue a farmers’ market, the privately operated model would have the least financial and staff impact on the City. Staff would recommend the City Council task the SCC with identifying a potential operator for a market on private property and work with one of the local shopping centers to establish a pilot-market under a temporary permit.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachment(s):
A. “Starting a New Farmers Market” guide prepared by UC Small Farm Center
B. Farmers’ Markets Comparison Map