Bidding for Swap Meet to Reopen
The Orange County Fair Board on Thursday decided to reopen bidding to select the manager of the fair’s popular swap meet instead of awarding the contract to longtime operator Tel Phil Enterprises.
Tel Phil created the Costa Mesa swap meet, called the Orange County Market Place, nearly 35 years ago.
Since then it has evolved into a popular weekend attraction drawing thousands of customers and hundreds of merchants.
For months, fair board members had contended that although the fair is a state agency, it was not obligated to award the contract by a competitive process. Tel Phil had urged that the fair board deal exclusively with it.
But several board members worried that selection of a swap meet operator without bids would be overruled by the state Department of Food and Agriculture.
In addition to Tel Phil, the other company interested is American Park ‘n Swap, a subsidiary of concession giant Delaware North of Buffalo, N.Y.
Both Tel Phil and American had submitted bids last year to operate the swap meet for the next 10 years. But because the bidding was challenged by both bidders for procedural reasons, the fair board rejected both bids and scrapped the process.
In January, the fair board decided not to solicit bids but reversed itself Thursday following last week’s recommendation by Deputy Food and Agriculture Secretary Kim Myrman that the board follow “an open bidding procedure.”
“I’m horribly disappointed with the letter,” board member Jim Barich said. “But the safe thing to do today is to put it out for an open bidding process.”
“The Department of Food and Agriculture has to approve any contract the board enters,” said Jeff Flint, a spokesman for American Park ‘n Swap, who had urged the fair to make its decision based on competitive bids. “We’re very pleased with the results today. Having an open process ensures the public gets the best deal.”
Jeff Teller, Tel Phil’s president, said he was disappointed with the board’s action but confident that his company’s long association as swap meet operator would continue.
“I appreciate the bidding process,” Teller said, “because I believe that after 35 years our prime track record will help in the decision for us to be the next licensee for the Market Place.”
Tel Phil, because of its longtime experience, was considered the popular choice as operator. It continues to operate the swap meet for the fair on a month-to-month contract.
Tel Phil pays the fair 35% of its gross receipts, which amounted to $4.5 million last year. American had offered 50%.
The fair board will hire a consultant to assess the fair’s bidding process. A spokeswoman said they expect the consultant to be hired in June and award the swap meet contract late in the year.
