Board tosses swap meet bids
Deirdre Newman
The Orange County Fair Board on Thursday rejected two proposals to
run the Orange County Market Place for the next 10 years and will
reopen the bidding process.
With the process becoming mired in controversy, the board said it
acted in the name of fairness.
The two companies that had submitted bids are Tel Phil
Enterprises, which created the concept for the high-end swap meet
back in 1969 and has been running it ever since, and American Park ‘n
Swap, a subsidiary of Delaware North, a privately owned company based
in Buffalo, N.Y. that specializes in the service industries.
At its meeting, the board decided to follow the unanimous advice
of its scoring committee to start from scratch and issue a new
invitation for proposals after hearing presentations from both
companies, public comment that heavily favored Tel Phil and advice
from legal counsel. The board voted 7 to 1, with member Emily Sanford
dissenting and Frank Barbaro abstaining, to reject the bids. Barbaro
abstained to prevent the appearance of a conflict of interest since
he owns 51% of the stock of a corporation that has a booth at the
Market Place.
The board then voted 8 to 0 to issue a new request for bids, with
Barbaro again abstaining.
The decision is a blow to Tel Phil President Jeff Teller, who had
adamantly argued that American Park ‘n Swap should play by the
initial rules of the bidding process. It is a measured victory for
American Park ‘n Swap, whose proposal was initially rejected on a
technicality. American Park ‘n Swap’s appeal of the rejection
prompted Thursday’s decision. American Park ‘n Swap officials had
hoped the board would decide to consider its bid along with Tel
Phil’s.
Board president Ruben Smith said his personal feeling was that the
process was tainted by various allegations and so it was better to
halt it and start over again.
“From day one, the goal was to make this a fair and open process,”
Smith said. “There were issues alleged by both sides. So I felt if it
went forward, it was just wasting time because it would end up in
litigation one way or another.”
Teller expressed satisfaction with the fair board’s decision.
“I think the board did what it felt was in the best interest of
the board, citizens of Costa Mesa and the fairgrounds,” Teller said,
adding that he didn’t want to speculate on what Tel Phil’s new bid
would contain.
Jerry Jacobs Jr., executive vice-president of Delaware North, said
the outcome did not surprise him.
“Certainly, it’s right from the board’s perspective and the
taxpayers,” Jacobs said. “Based on the history [of this process], the
board has to maintain the integrity of the process.”
Sanford said she dissented because she thought integrity could
best be maintained by working with the two bids already submitted.
The district originally issued an invitation for bids on the lease
for the outdoor, retail marketplace at the fairgrounds in January,
said Becky Bailey-Findley, fair and exposition center president. Tel
Phil and American Park ‘n Swap submitted their bids by the April 2
deadline. The fair board’s scoring committee deemed Tel Phil’s
proposal complete and American Park ‘n Swap’s non-responsive because
it omitted one document.
A notice of the proposed award was issued to Tel Phil on April 10,
but American Park ‘n Swap appealed that decision to the state
Department of General Services. The state issued its recommendation
in June, suggesting that the board consider American Park ‘n Swap’s
bid because its omission was “immaterial.”
Tel Phil filed a temporary restraining order to keep the bid
proposals under wraps until the fair board made its final decision.
The Orange County Superior Court granted the order.
Delaware North owns the Boston Bruins National Hockey League team
and operates hospitality and event venues at large-scale tourist
attractions such as the Kennedy Space Center and Yosemite National
Park.
During his presentation, Jacobs emphasized the company’s family
roots. The company was founded by Jacobs’ grandfather and his
grandfather’s two brothers almost 100 years ago, Jacobs said.
“We trade on our name -- the Jacobs’ family name. That’s how we
get our business,” Jacobs said.
The company views itself as a caretaker of “special places” around
the country such as Yosemite National Park, the Grand Canyon and
Niagara Falls, Jacobs said.
At the board’s request, Jacobs clarified information on its
operation of the now defunct Los Alamitos swap meet and a felony
conviction against Delaware North.
He said the owners of the Los Alamitos racetrack had tried running
a swap meet, which wasn’t doing very well, so it asked Delaware
North, which had a concession contract, to try its hand. The company
obliged, but as it was trying to revive the swap meet, the owners
decided to sell the land, Jacobs said.
The felony conviction occurred during his grandfather’s term and
involved the company that preceded Delaware North, Jacobs said.
American Park ‘n Swap President John Fernbach urged the board to
open its bid and score it, along with Tel Phil’s.
“We think the best decision is not made in an atmosphere of
intimidation and misinformation, but in an open process,” Fernbach
said.
Robert Currie, an attorney with Latham & Watkins, spoke on behalf
of Tel Phil. He paid tribute to the Tellers’ evolution of the Market
Place. Teller’s father, Bob, started the event in 1969.
“I have great admiration for American Park ‘n Swap and Delaware
North,” Currie said. “I’ve been to the Grand Canyon -- gorgeous;
Yosemite -- gorgeous; Niagara Falls -- gorgeous; and Yellowstone --
gorgeous. I’ve also been to the Orange County Market Place. God made
the first four places, not Delaware North. The Tellers made the
Orange County Market Place, and that’s meaningful, very meaningful.”
He urged the board to abide by the requirements in its request.
“The fact that you, ladies and gentlemen, set forth a requirement
in unambiguous terms of what people must do -- [American Park ‘n
Swap] didn’t do it -- and it doesn’t make much sense to go back to
square zero,” Currie said. The majority of public speakers favored
the incumbent.
“I live in College Park and have dealt with previous fair boards
and the Tellers on many occasions,” former Costa Mesa Mayor Linda
Dixon said. “One time, we butted heads, the Tellers responded, met
with the community, made changes and have truly won the respect of
the community.”
Although no one spoke in favor of American Park ‘n Swap during the
public comment session, the company submitted a slew of letters to
the fair board supporting its management.
“We find that from top to bottom, Delaware North, and our local
operators of American Park ‘n Swap are more than competent, very
helpful and very willing to work with their vendors,” wrote Mocha and
Glenn Faller, vendors at American’s Phoenix Park ‘n Swap. “We would
highly recommend them to assume management and control of any other
operation.”
The next step is for the fair staff to draw up a new invitation
for proposals. Smith said he didn’t know when that would be done
since the fair board just made its decision.
In general, requests for proposals involve analysis, advertising
requirements and giving notice, Bailey-Findley said. The original
request had eight amendments. The staff will focus on making the new
request more concise and consider questions such as: What does the
fair really want? and How does it make it fair and equitable?
Bailey-Findley said that by fast-tracking the process, board
members hope to be able to award a contract by the beginning of next
year.
* DEIRDRE NEWMAN covers Costa Mesa and may be reached at (949)
574-4221 or by e-mail at deirdre.newman@latimes.com.
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